Landmark Legal Victory for Cryptocurrency and Open-Source Innovation
New York, U.S./NY, April 25th, 2025, Chainwire
A significant win for the cryptocurrency community and advocates of open-source innovation has been achieved through a groundbreaking ruling in a legal battle involving Richard Heart. The serial entrepreneur, author, and philanthropist successfully secured the dismissal of all claims brought against him by the U.S. Securities and Exchange Commission (SEC).
On February 28, 2025, U.S. District Judge Carol Bagley Amon granted Richard Heart’s motion to dismiss, effectively clearing him and his blockchain products — HEX, PulseChain, and PulseX — of allegations of being involved in unregistered securities and misusing investor funds. The SEC had until April 21 to amend its complaint but ultimately decided not to pursue any further legal action.
Richard Heart took to Twitter to share his thoughts on the victory, stating, “Richard Heart, PulseChain, PulseX, and HEX have defeated the SEC completely and have achieved regulatory clarity that nearly no other coins have. They’re now safer to work with in ways that almost no other coins are. …this is the only case where the SEC lost and crypto won across the board, with a dismissal in court of every single claim the SEC brought.”
Legal experts see this ruling as a significant setback for the SEC’s aggressive stance on cryptocurrency regulation, which has faced criticism for overreach and inconsistent enforcement practices. The SEC initially filed a lawsuit against Heart in July 2023, alleging that he raised over $1 billion through unregistered offerings and used a portion of the funds for personal expenses. Additionally, the SEC targeted Heart’s blockchain products, claiming they were his “alter egos.”
Judge Carol Bagley Amon’s decision to dismiss the SEC’s claims highlighted the lack of jurisdiction, as the offerings were accessible globally and not specifically targeted at the U.S. market. The court also noted the absence of any substantial connection to domestic securities transactions, emphasizing that the tokens were not traded on U.S. exchanges and that there was no evidence of direct marketing to U.S. investors.
The court further rejected the SEC’s fraud allegations, stating that there was no evidence of misleading investor communications or misuse of funds within U.S. jurisdiction. As a result, all claims against Richard Heart and his blockchain products were dismissed, with the SEC confirming that it would not pursue further legal action.
Richard Heart has consistently maintained compliance with the law regarding his products, and this ruling solidifies his position. The outcome of this case is seen as a significant victory for the cryptocurrency industry, open-source development, and freedom of speech.
A U.S.-based attorney who attended the hearings emphasized the importance of the ruling, stating that “This dismissal reinforces that publishing software — especially open-source blockchain code — is protected speech.”
This legal victory not only marks a turning point in the SEC’s approach to crypto regulation but also provides a level of clarity for HEX, PulseChain, and PulseX that few other tokens currently enjoy.
Contact
Journalist
Taylor Kennedy
Freelance
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