Richard Heart Achieves Legal Victory Against SEC
On April 25, 2025, a significant legal breakthrough was reported from New York, where the U.S. Securities and Exchange Commission’s (SEC) case against Richard Heart, renowned entrepreneur and advocate for cryptocurrency, came to a decisive conclusion. U.S. District Judge Carol Bagley Amon issued a ruling on February 28 that completely dismissed all allegations put forth by the SEC, which had claimed that Heart and his blockchain projects — HEX, PulseChain, and PulseX — were involved in unregistered securities offerings and the misuse of investor funds.
Pivotal Moment for Cryptocurrency
This outcome marks a pivotal moment not only for Heart but for the broader cryptocurrency landscape, often fraught with regulatory uncertainty. In a statement released through his social media on April 21, Heart expressed his gratification and stated,
“Richard Heart, PulseChain, PulseX, and HEX have defeated the SEC completely… this is the only case where the SEC lost and crypto won across the board.”
He underscored how this victory provides unparalleled safety and clarity for his projects compared to virtually all other cryptocurrencies.
Court Findings
The SEC initially filed its lawsuit against Heart in July 2023, alleging that he managed to raise over $1 billion through inadequate registration processes while diverting significant amounts towards personal expenditures. Notably, the SEC’s approach was atypical as they included Heart’s projects as co-defendants, claiming they were extensions of his business persona.
In her ruling, Judge Amon decisively rebuffed the SEC’s claims, notably stating the agency’s lack of jurisdiction over the matter. The Judge emphasized that the offerings were designed for global participants rather than specifically targeting U.S. investors, with no significant connections identified to the U.S. markets or exchanges. Furthermore, the court found that the SEC had not substantiated its fraud allegations, which led to the complete dismissal of the case. Following this ruling, the SEC acknowledged that it would not pursue an amended or refilled complaint against Heart, thereby solidifying the court’s findings and closing the case without any findings of illegal conduct.
Implications for Open-Source Innovation
Heart’s legal team and supporters herald this as a landmark ruling for open-source innovation and free speech, where the publication and distribution of software, particularly open-source blockchain code, are affirmed as protected under the First Amendment. This decision could serve as a cornerstone for future cases involving cryptocurrency regulations, as legal experts view it as a blow to the SEC’s broadened enforcement strategies, which have faced criticisms for being overreaching and inconsistently applied.
A New Era for Cryptocurrency
As this case draws to a close, Heart’s projects now enjoy a level of legal clarity and security rarely seen in the cryptocurrency sphere, potentially setting a precedent for how similar cases may be approached in the future.
