The decision followed the court’s dismissal of the initial complaint on February 28. Judge Amon ruled the SEC had not shown that Heart’s actions targeted U.S. investors. She granted the SEC permission to refile, but the agency chose not to proceed by the April 21 deadline.
The original lawsuit, filed in July 2023, accused Heart of conducting unregistered securities offerings through his projects HEX, PulseChain, and PulseX. The SEC claimed Heart raised more than $1 billion by promoting the tokens.
Richard Heart Responds After SEC Withdrawal
On April 22, 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 stated that the case was unique because the SEC had sued software code itself.
Heart’s statement followed months of legal arguments. He maintained that the SEC lacked authority over him since he resided in Finland and did not operate within the United States. The SEC opposed this view and pointed to his appearance at a Las Vegas event as proof of U.S. ties.
Despite those claims, the court sided with Heart and dismissed the case without prejudice. The SEC had the option to file an amended complaint but chose not to act.
SEC Cited Promotional Activity and Watch Seizure
In the original complaint, the SEC said Heart used investor funds for personal luxury items, including expensive watches. In a related move, Finnish police reportedly seized watches worth $2.6 million from Heart.
The SEC also said Heart misled investors by portraying HEX, PulseChain, and PulseX as paths to financial success. The agency highlighted events and online promotions where Heart encouraged users to buy the tokens.
Heart attempted to dismiss the case in April 2024, arguing the SEC lacked jurisdiction. The court later agreed, citing insufficient evidence of targeted U.S. investor activity.
HEX Token Price Decline Follows Legal Developments
The HEX token reached an all-time high of $0.031 in December 2024. Since then, the price has dropped 76%. Other tokens connected to Heart, including PulseChain and PulseX, have also seen sharp declines.
These drops follow broader trends in the altcoin market. Most tokens have not matched Bitcoin’s price growth in 2025.
The SEC has either suspended or dropped several crypto-related cases this year. However, the Richard Heart case is one of the few where a full court dismissal occurred. The court documents and public statements show that no amended complaint will be filed.
