Judge Dismisses SEC Lawsuit Against HEX Founder, But Legal Troubles Persist

A U.S. judge has dismissed the SEC’s lawsuit against Richard Heart, founder of Hex, ruling that the regulator lacked jurisdiction over his crypto dealings.

The SEC had accused Heart of raising over $1 billion through unregistered offerings and misusing $12.1 million of investor funds on luxury items, including a massive black diamond. However, the court found that the alleged misconduct occurred outside the U.S., undermining the SEC’s case.

Heart, who remains active online despite facing separate legal troubles in Finland, celebrated the decision, calling it a victory for cryptocurrency. He emphasized that his projects, including Hex, PulseChain, and PulseX, have continued to operate successfully. Following the ruling, the prices of these tokens surged, with some gaining over 70% as investors reacted positively to the legal win.

Despite the dismissal, Heart’s legal challenges are far from over. Finnish authorities have been pursuing him over allegations of tax fraud and assault, and an Interpol Red Notice was issued in December.

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SEC Clarifies Memecoins Not Classified as Securities

Although he remains at large, Finnish police have seized millions of dollars worth of luxury watches allegedly linked to him. Meanwhile, the SEC has until March 20 to amend and refile its complaint, leaving open the possibility of further legal action.

Alexander Stefanov