SEC’s Case Against Richard Heart Dismissed, But Legal Troubles May Not Be Over – CryptoMode

A U.S. federal judge has dismissed the Securities and Exchange Commission’s lawsuit against Richard Heart, the founder of HEX, PulseChain, and PulseX, ruling that the agency lacked jurisdiction.

While this decision is a temporary victory for the founder, the regulatory agency has 20 days to amend its complaint and attempt to refile the case.

Court Rules Against the SEC on Jurisdictional Grounds

The SEC had accused Heart of raising over $1 billion through unregistered securities offerings and misappropriating at least $12 million to fund luxury purchases, including expensive cars, watches, and even the world’s largest black diamond.

However, Judge Carol Bagley Amon ruled that the agency failed to demonstrate a strong legal connection between Heart’s activities and U.S. investors.

Richard Heart’s Legal Woes are not Over

Heart, a U.S. citizen residing in Finland, had marketed his projects primarily through online platforms. The judge determined that his promotional efforts did not specifically target American investors but were broadly accessible worldwide.

Because the SEC did not present clear evidence that the founder was actively soliciting investments within the U.S., the court dismissed the case on jurisdictional grounds. The ruling also highlighted that HEX tokens were not listed on U.S.-based exchanges, further weakening the agency’s argument.

While Heart has won this round, the fight may not be over. The SEC still has the opportunity to amend its complaint and attempt to refile the case, provided it can establish stronger jurisdictional claims. If the agency can prove that the founder’s activities had a direct and substantial impact on U.S. investors, the lawsuit could be revived.

Many expect the agency to step back from pursuing him, given the shifting policies and recent decisions to withdraw cases against Consensys, Robinhood, and several other major crypto firms.

Beyond legal troubles, the founder is facing mounting legal issues elsewhere. Finnish authorities have accused him of large-scale tax evasion, with estimates running into the hundreds of millions of euros. Additionally, he is wanted for alleged assault, leading to an Interpol Red Notice for his arrest. In a recent development, Finnish law enforcement seized approximately $2.6 million worth of luxury watches linked to the founder.