SEC’s Decision on Richard Heart
The U.S. Securities and Exchange Commission (SEC) announced that it does not plan to pursue an amended securities fraud complaint against Richard Schueler, who is widely recognized by his pseudonym, Richard Heart. In a letter addressed to Judge Carol Bagley Amon of the New York District Court, SEC attorney Matthew Gulde confirmed the decision, referencing an earlier dismissal of the SEC’s original complaint on February 28.
Jurisdiction and Dismissal
Judge Amon ruled that the SEC had not demonstrated sufficient grounds to assert jurisdiction over Heart’s actions, which she indicated were not explicitly directed at American investors. While the SEC was granted a chance to revise its complaint by March 20, the deadline was subsequently extended to April 21.
Heart’s Reaction
Following this news, Heart took to X on April 22 to proclaim a significant victory, stating,
“Richard Heart, PulseChain, PulseX, and HEX have defeated the SEC completely and have achieved regulatory clarity that nearly no other coins have.”
He argued that other cryptocurrency cases had been voluntarily dropped by the SEC and asserted that his case uniquely represented a win for the cryptocurrency community due to the dismissal of all claims brought forth by the SEC. Heart emphasized that the case raised key issues about open-source software and free speech, since the SEC had effectively sued software code.
SEC’s Legal Action Against Heart
In July 2023, the SEC initiated legal action against Heart for purportedly offering unregistered securities through three tokens: HEX, PulseChain (PLS), and PulseX (PSLX). The commission alleged that Heart amassed over $1 billion by marketing these tokens as a pathway to immense wealth for investors. In early 2024, Heart sought to have the SEC’s allegations dismissed, asserting that the regulatory body had no jurisdiction over him as he did not live in the U.S. The SEC countered this in August, citing Heart’s promotion of the tokens at a Las Vegas event.
Interpol Red Notice
In December 2024, Interpol issued a Red Notice for Heart’s arrest in Finland amidst suspicions of tax evasion.
Token Performance
Despite securing a peak price of $0.031 for its native token HEX in December 2024, the token has since declined about 76%, mirroring the struggles faced by many alternative cryptocurrencies that failed to maintain the momentum seen in Bitcoin this year. Notably, under the Trump administration, the SEC has either dropped or paused several enforcement actions against various cryptocurrency organizations.
