SEC Declares No Further Lawsuit Against HEX Founder
The U.S. Securities and Exchange Commission (SEC) has announced that it does not intend to refile a securities fraud lawsuit against Richard Schueler, also known as Richard Heart, the founder of HEX. According to the SEC's lawyer, Matthew Gulde, the decision not to refile was reported to Judge Carol Bagley Amon of the New York District Court on April 21. Previously, on February 28, the SEC's lawsuit was dismissed as it could not prove its jurisdiction over Heart's activities, which did not clearly target U.S. investors.
Heart Declares Victory Against SEC
Richard Heart shared on X that HEX, PulseChain, and PulseX have completely defeated the SEC and obtained regulatory clarity that few other cryptocurrencies have achieved. Heart believes this victory is not just for himself but also a pride for open-source software, cryptocurrencies, and freedom of speech, as the SEC essentially "sued the software code" in this case.
SEC's Lawsuit in Finland
In July 2023, SEC sued Heart, alleging he did not register the offering of securities for three Tokens: HEX, PulseChain (PLS), and PulseX (PSLX), accusing him of earning over $1 billion by advertising these Tokens as "the path to massive wealth for investors". In April 2024, Heart attempted to dismiss this lawsuit, stating that the SEC "has no power over him" because he does not reside in the U.S.
HEX's Situation After the Incident
PulseChain's native Token, HEX, reached its highest point at $0.031 in December 2024 but then dropped 76%, along with the decline of most altcoins while Bitcoin maintained its growth trajectory.
SEC's Announcement
The SEC has abandoned or suspended many other lawsuits against cryptocurrency companies this year, reflecting a policy shift under the Trump administration. This indicates a change in the SEC's approach to cryptocurrencies and the legal tug-of-war with businesses in this industry.
