A U.S. district court has dismissed the Securities and Exchange Commission’s (SEC) lawsuit against Richard Heart, the founder of Hex, ruling that the agency lacked jurisdiction over his alleged activities.
The lawsuit had accused Heart, whose real name is Richard Schueler, of raising more than $1 billion through unregistered crypto offerings and misappropriating $12.1 million for personal luxuries, including the world’s largest black diamond.
However, in a Feb. 28 decision, Judge Carol Bagley Amon determined that the SEC failed to establish a direct connection between Heart’s activities and U.S. investors.
Judge Rules No U.S. Jurisdiction Over Crypto Misconduct Allegations
The Judge noted that the alleged misconduct occurred through digital wallets and crypto platforms with no clear ties to the United States.
“The alleged misappropriation occurred through digital wallets and crypto asset platforms, none of which were alleged to have any connection with the United States,” Amon stated in her ruling.
“To the extent the Complaint shows that Heart misappropriated investor funds through deceptive mixer transactions, those actions occurred entirely outside of the United States.”
The SEC had classified Hex (HEX), PulseChain (PLS), and PulseX (PLSX) as unregistered securities in its complaint.
Since the ruling, all three tokens have surged in value, with HEX, PLS, and PLSX rising by 78%, 36%, and 67%, respectively.
Heart celebrated the court’s decision, describing it as a victory not just for himself but for the broader cryptocurrency community.
“HEX has operated flawlessly for over five years. Today’s decision in favor of a cryptocurrency founder and his projects over the SEC brings welcome relief and opportunity to all cryptocurrencies,” Heart wrote in a Feb. 28 post on X.
Despite the dismissal, the legal battle may not be over.
Judge Amon allowed the SEC to amend its complaint and refile the case within 20 days, leaving the door open for further legal action.
Heart has also faced legal trouble outside the U.S.
Finnish Police Seize $2.6M in Luxury Watches from Hex Founder
As reported, Finnish officials did manage to seize approximately $2.6 million worth of luxury watches that he allegedly abandoned.
Schueler is wanted in Finland for alleged tax evasion and assault charges, with authorities struggling to locate his whereabouts.
Inspector Harri Saaristola, who is leading the investigation, revealed that the watches were traced through intelligence activities. While some were purchased in the U.S., many were acquired in Finland.
Schueler is suspected of tax evasion between 2020 and 2024, with his unpaid taxes potentially reaching “several hundred million euros.”
He is also accused of assaulting a 16-year-old in 2021, an incident detailed in Europe’s most wanted fugitives list.
On December 22, Interpol issued a “Red Notice” for Schueler to aid in his capture.
Despite these allegations, Schueler remains active online, using platforms like X and YouTube to promote HEX.
The post Court Dismisses SEC Lawsuit Against Hex Founder Richard Heart appeared first on Cryptonews.
