• Written by: Nakamura Haruto
• Fri, 28 Feb 2025
•   Indonesia

A federal judge has dismissed the U.S. Securities and Exchange Commissions (SEC) lawsuit against cryptocurrency entrepreneur Richard Heart.The post Judge Dismisses SEC Lawsuit Against Crypto Founder Richard Heart appeared first on Kanalcoin.

Judge Dismisses SEC Lawsuit Against Crypto Founder Richard Heart

A federal judge has dismissed the U.S. Securities and Exchange Commissions (SEC) lawsuit against cryptocurrency entrepreneur Richard Heart, ruling that the agency lacked jurisdiction over his digital asset projects.

The decision, issued on February 28, 2025, by Judge Carol Bagley Amon in Brooklyn, New York, marks a significant setback for the SECs crypto enforcement efforts.

Heart, a Finland-based entrepreneur also known as Richard Schueler, was accused of conducting unregistered securities offerings through his projects HEX, PulseChain, and PulseX, allegedly raising over $1 billion.

The SEC claimed Heart misused at least $12 million in investor funds for luxury purchases, including high-end automobiles, expensive watches, and a 555-carat black diamond known as The Enigma.

Court Ruling Limits SECs Reach Over Foreign Crypto Projects

The lawsuit, filed in 2023, was one of the SECs most high-profile enforcement actions in the cryptocurrency space. However, the court ruled that the SEC failed to demonstrate that Heart specifically targeted U.S. investors.

Judge Amon noted that while his online communications were accessible globally, they were not deliberately aimed at the U.S. market. Additionally, she pointed out that the digital tokens associated with Hearts projects were not listed on U.S.-based exchanges, further undermining the SECs jurisdictional claims.

The ruling could have broader implications for the regulation of cryptocurrency projects based outside the United States. Legal experts suggest that the decision sets a precedent limiting the SECs ability to regulate foreign-based crypto ventures unless there is clear evidence of direct solicitation of U.S. investors.

While the SEC has the option to appeal within 20 days, legal analysts note that the agencys decision may depend on shifting enforcement priorities under the current administration.

The ruling comes amid a wave of recent SEC dismissals of crypto-related lawsuits, including cases involving Uniswap, OpenSea, Gemini, Coinbase, and Robinhood.

The post Judge Dismisses SEC Lawsuit Against Crypto Founder Richard Heart appeared first on Kanalcoin.