US SEC Drops Lawsuit Against Hex Founder Richard Heart

In Brief:

The SEC will not refile its case against Richard Heart over HEX, PulseChain, and PulseX.

Court found no sufficient evidence that Heart targeted U.S. investors.

The U.S. Securities and Exchange Commission has officially dropped its lawsuit against Hex founder Richard Heart, also known as Richard Schueler. The SEC had previously accused Heart of illegally raising over $1 billion through unregistered securities involving HEX, PulseChain, and PulseX.

A federal court had earlier dismissed the case, stating the SEC failed to prove Heart directly targeted U.S. investors. The agency then declined to file an amended complaint before the given deadline.

Heart responded publicly, calling the outcome a “comprehensive win” for open-source software, encryption, and free speech. He noted that the original charges even targeted the “software code itself.”

The case had included an international arrest warrant issued in Finland, where Heart currently resides. With the dismissal, the SEC has now added this to a growing list of crypto-related enforcement actions dropped in 2025.

HEX, the token associated with Heart’s ecosystem, remains down 76% from its peak in December 2024.

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