YEREVAN (CoinChapter.com) — The U.S. Securities and Alternate Fee (SEC) mentioned it won’t proceed its fraud case in opposition to HEX founder Richard Schueler, also referred to as Richard Coronary heart. In a letter dated April 21, SEC lawyer Matthew Gulde knowledgeable Choose Carol Bagley Amon that the company wouldn’t file an amended grievance.
The choice adopted the court docket’s dismissal of the preliminary grievance on February 28. Choose Amon dominated the SEC had not proven that Coronary heart’s actions focused U.S. buyers. She granted the SEC permission to refile, however the company selected to not proceed by the April 21 deadline.
The unique lawsuit, filed in July 2023, accused Coronary heart of conducting unregistered securities choices by means of his tasks HEX, PulseChain, and PulseX. The SEC claimed Coronary heart raised greater than $1 billion by selling the tokens.
Richard Coronary heart Responds After SEC Withdrawal
On April 22, Coronary heart posted on X that HEX, PulseChain, and PulseX had “defeated” the SEC. He added that his case ended with “a dismissal in court of every single claim the SEC brought.” He acknowledged that the case was distinctive as a result of the SEC had sued software program code itself.
Coronary heart’s assertion adopted months of authorized arguments. He maintained that the SEC lacked authority over him since he resided in Finland and didn’t function inside america. The SEC opposed this view and pointed to his look at a Las Vegas occasion as proof of U.S. ties.
Regardless of these claims, the court docket sided with Coronary heart and dismissed the case with out prejudice. The SEC had the choice to file an amended grievance however selected to not act.
Within the authentic grievance, the SEC mentioned Coronary heart used investor funds for private luxurious gadgets, together with costly watches. In a associated transfer, Finnish police reportedly seized watches price $2.6 million from Coronary heart.
The SEC additionally mentioned Coronary heart misled buyers by portraying HEX, PulseChain, and PulseX as paths to monetary success. The company highlighted occasions and on-line promotions the place Coronary heart inspired customers to purchase the tokens.
Coronary heart tried to dismiss the case in April 2024, arguing the SEC lacked jurisdiction. The court docket later agreed, citing inadequate proof of focused U.S. investor exercise.
HEX Token Worth Decline Follows Authorized Developments
The HEX token reached an all-time excessive of $0.031 in December 2024. Since then, the price has dropped 76%. Different tokens linked to Coronary heart, together with PulseChain and PulseX, have additionally seen sharp declines.
These drops observe broader tendencies within the altcoin market. Most tokens haven’t matched Bitcoin’s price development in 2025.
The SEC has both suspended or dropped a number of crypto-related instances this 12 months. Nevertheless, the Richard Coronary heart case is without doubt one of the few the place a full court docket dismissal occurred. The court docket paperwork and public statements present that no amended grievance can be filed.