Richard Heart Wins Landmark Legal Victory Against SEC, Dismisses All Cryptocurrency-Related Claims

Landmark Legal Victory for Richard Heart and Cryptocurrency

In a significant legal triumph, entrepreneur Richard Heart has successfully defeated the U.S. Securities and Exchange Commission (SEC), with all claims against him and his blockchain projects—HEX, PulseChain, and PulseX—dismissed. U.S. District Judge Carol Bagley Amon ruled in Heart's favor on February 28, 2025, and the SEC opted not to amend or refile its complaint by the April 21 deadline, effectively closing the case without any findings of wrongdoing.

SEC's Claims Dismissed

The SEC had alleged that Heart raised over $1 billion through unregistered offerings and misused investor funds. Additionally, the agency uniquely named his open-source crypto products as codefendants, claiming they were Heart's "alter egos." However, Judge Amon rejected these arguments, citing the SEC's lack of jurisdiction. The court determined that the tokens were not sold on U.S. exchanges or marketed to U.S. investors, further dismissing fraud claims due to insufficient evidence.

Broader Implications

Legal analysts view this ruling as a significant setback for the SEC's expansive crypto enforcement strategy, which has faced criticism for regulatory overreach. Heart's victory provides rare legal clarity for his projects, enhancing their appeal to investors and developers. The dismissal also underscores the protected status of open-source blockchain code as free speech, according to a U.S.-based attorney who attended the hearings.

Reaction and Impact

Richard Heart celebrated the ruling on social media, emphasizing the safety and regulatory clarity now associated with HEX, PulseChain, and PulseX. This landmark case sets a precedent, offering hope for other cryptocurrency projects facing similar legal challenges. The outcome reinforces the resilience of innovation in the crypto space and highlights the importance of judicial oversight in balancing regulatory actions.