Richard Heart Wins Legal Battle as SEC Lawsuit Gets Dismissed
A U.S. federal judge has dismissed the lawsuit filed by the Securities and Exchange Commission (SEC) against Richard Heart, the founder of HEX, PulseChain, and PulseX. The ruling, issued by U.S. District Judge Carol Bagley Amon in Brooklyn, determined that there were insufficient ties between Heart’s activities and the United States, making it difficult for the SEC to pursue legal action.
The SEC had accused Heart of raising over $1 billion through unregistered cryptocurrency offerings and allegedly misusing investor funds. However, this court decision effectively nullifies those claims, marking a significant victory for Heart and his projects.
HEX Price Manipulation Allegations
The SEC originally claimed5 that Heart misled investors by promoting HEX as a “blockchain certificate of deposit” and falsely guaranteeing 38% annual returns. The agency argued that he violated securities laws by selling HEX, PulseChain, and PulseX without regulatory approval.
Additionally, the SEC alleged that Heart used at least $12 million of investor funds to purchase luxury items, including sports cars, designer watches, and a rare black diamond known as “The Enigma.”
Despite these accusations, the case faced significant hurdles as Heart resides in Finland, making legal enforcement in the U.S. more complex. This ruling could impact future crypto regulations, especially for decentralized projects operating internationally.
HEX and PulseChain Prices Surge After Court Decision
Following the SEC’s lawsuit dismissal, HEX and PulseChain have experienced a sharp rise in trading activity. HEX surged by 60.21%, reaching $0.01522, as investor confidence rebounded. Supporters believe this ruling could breathe new life into HEX, attracting more buyers and reviving its market momentum.
With the SEC struggling to enforce regulations on global crypto projects, many investors view this as a win for decentralized finance. Trading volumes have spiked as speculation grows that HEX and PulseChain could see continued growth in the coming months.
Court Ruling Highlights Shift in Crypto Regulation
The dismissal of the SEC’s case against Heart raises questions about the agency’s ability to regulate international crypto projects. The SEC has also recently dropped cases against major platforms like Uniswap and Coinbase, signaling a possible shift in its enforcement strategy.
With the recent formation of the SEC’s Crypto Enforcement and Transparency Unit (CETU), regulators may now take a more structured approach to monitoring digital assets. This decision could set a precedent for how crypto regulations evolve, particularly for decentralized and cross-border projects.
As the crypto industry8 continues to expand, this case serves as a key example of the ongoing tug-of-war between regulators and blockchain innovation.
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