Judge Throws Out SEC Lawsuit Against HEX Founder Richard Heart

BREAKING: A federal judge in Brooklyn, New York, dismissed a high-profile lawsuit filed by the U.S. Securities and Exchange Commission against Richard Heart (real name Richard Schueler), the founder of the HEX token, on Friday, February 28, 2025.

The SEC had accused Heart of misusing millions of dollars in investor funds for lavish personal expenditures, allegations that sparked widespread attention when the case was first filed in 2023. The ruling marks a notable shift in the ongoing saga of regulatory oversight within the fast-evolving digital asset space, offering a moment of relief for Heart and his supporters.

The SEC’s lawsuit claimed Heart diverted funds raised through HEX to finance an extravagant lifestyle. However, the judge’s decision today to throw out the case underscores the complexities regulators face when applying traditional financial laws to decentralized digital currencies. With this ruling, the court has effectively handed Heart a victory, potentially setting a precedent for how similar cases might be handled moving forward.

A Turning Point for Crypto Regulation

The timing of the dismissal couldn’t be more striking, arriving at the tail end of a week that has already reshaped the broader regulatory landscape for digital assets. Industry observers have noted that this decision could embolden crypto founders navigating scrutiny from government agencies, as it highlights the challenges the SEC faces in proving its claims in court.

Heart posted to social media to comment about the judge’s ruling, saying:

I appreciate Judge Amon's careful ruling which has dismissed all of the SEC's claims against me. This type of victory over the SEC is quite rare. PulseChain, PulseX and HEX are not securities and should be allowed to flourish. HEX has operated flawlessly for over 5 years. Today's decision in favor of a cryptocurrency founder and his projects over the SEC brings welcome relief and opportunity to all cryptocurrencies. Thank you President Trump for supporting cryptocurrency.

For Heart, the founder of a token that has garnered both fervent support and sharp criticism, the outcome represents a vindication after nearly two years of legal pressure. While the SEC has not yet indicated whether it will appeal, the dismissal adds fresh fuel to the debate over how much authority regulators should wield in the crypto space.

The impact of the ruling was felt almost immediately in the market, with the HEX token surging by an impressive 50% in value following the news of the case’s dismissal. This sharp increase reflects renewed confidence among investors, who appear to view the decision as a green light for it’s legitimacy and future prospects.