The U.S. Securities and Exchange Commission (SEC) has officially closed its case against Richard Schueler, widely known in the crypto world as Richard Heart, the founder of Hex.
In a letter sent to Judge Carol Bagley Amon of the New York District Court — and later shared by Heart on social media platform X — the SEC stated it will not submit a revised complaint. This move leaves the earlier court dismissal in place.
The SEC originally filed charges against Heart in July 2023, accusing him of raising over $1 billion through unregistered offerings related to his cryptocurrency ventures: Hex (HEX), PulseChain (PLS), and PulseX (PSLX). The agency also alleged that Heart used investor funds to finance a lavish lifestyle, which included expensive watches and luxury cars, all while marketing his tokens as a path to extraordinary wealth.
The case took a significant turn in February when Judge Amon dismissed the lawsuit, stating the SEC had not sufficiently proven that Heart had directly targeted investors in the U.S. Although the SEC was granted time to amend its case, it has now opted to drop the matter entirely.
This development aligns with a broader shift in the SEC’s approach under the current administration. Since former SEC Chair Gary Gensler stepped down in January, the agency has scaled back several high-profile actions against major crypto companies, including Coinbase, Kraken, and ConsenSys.
Heart celebrated the dismissal as a victory, asserting his projects (HEX, PulseChain, and PulseX) now possess superior regulatory clarity compared to most crypto assets. He framed the decision as a win for cryptocurrency, open-source development, and digital free speech, suggesting the case could have set a negative precedent for the broader software ecosystem.
Despite the SEC’s decision, Heart’s legal issues are far from over. He was placed on Interpol’s Red Notice list in December 2024. Finnish authorities are seeking his extradition on charges of prolonged tax evasion and a serious assault allegation involving a 16-year-old. His name remains listed among Europe’s most wanted individuals.
