A U.S. District Court judge dismissed the SEC case against Richard Heart, Hex founder and creator of PulseChain and PulseX. The SEC accused Heart of scamming investors out of over $1 billion in unregistered crypto sales, and of using the funds to purchase luxuries like a $3.97 million black diamond ring and sports cars. Judge Carol Bagley Amon ruled that the SEC failed to prove U.S. jurisdiction over Heart’s overseas crypto sales, which led to the case being dismissed.
Why the Case Was Dismissed: Failure to Prove U.S. Jurisdiction
🚨 BREAKING: A US judge has dismissed the SEC’s fraud lawsuit against Hex founder Richard Heart. Big win for the crypto community! 👀🔥 #Crypto #SEC #Hex pic.twitter.com/K0ARuxrTKh
— Bro’mode (@igdra001) March 1, 2025
The main reason for the dismissal was the inability of the SEC to establish a correlation between America and the activities of Heart. TheJudge Amon reported that the fake deceptive transactions are occurring on cryptocurrency platforms and electronic wallets with no direct linkages with the United States. Since these activities were not specifically targeted at U.S. investors, the SEC could not prove that the U.S .courts had jurisdiction over the case. This ruling defines the interesting problems of regulators in dealing with transnational cryptocurrency ventures without clearly defined national borders.
What’s Next for the SEC?
Although this ruling is a clear victory for Richard Heart, it does not mean the case is over. Judge Amon provided the SEC with a window to refile its complaint and resubmit by March 20, 2025, giving the regulator a chance to bolster the mistakes in its original case. It would enable the SEC to come back to it if they’re able to construct a stronger argument or more conclusively establish jurisdiction.
Heart’s Legal Struggles in Finland
Despite this legal victory, Richard Heart is not free from other legal skirmishes. He remains charged with tax fraud and assault in Finland, where he was apprehended by authorities in 2024. Additionally, Interpol issued a Red Notice for his arrest. However, Heart remains active on social media, still actively promoting his cryptocurrency projects, even when he is beyond the reach of authorities.
Implications for the Future of Crypto Regulation
This case illustrates the growing complexity of cryptocurrency regulation. Since crypto projects are as global in scope, it is increasingly difficult for any one nation to assert jurisdiction over activities that take place in the virtual world. While the SEC can continue its efforts to pursue Heart, this case sets a precedent for how future crypto regulations and jurisdictional issues can unfold.
