SEC Drops Securities Fraud Case Against Hex Founder

The U.S. Securities and Exchange Commission has dropped its case against Richard Heart, founder of the Hex, PulseChain, and PulseX projects. In a letter filed April 21, regulators told a New York court they wouldn’t amend their complaint after a judge dismissed the original action in February. The ruling hinged on jurisdiction—Heart’s operations weren’t specifically targeting American investors. Though granted until April to refile, the SEC chose to walk away entirely. The decision marks a rare retreat for the aggressive crypto enforcement division, which has pursued dozens of similar cases under Chair Gary Gensler’s leadership. Legal observers note the outcome may embolden other offshore projects with tangential U.S. connections. "When regulators overreach and lose, it creates playbooks for the next defendant," said former SEC attorney John Reed Stark. The case contained no allegations against specific tokens or exchanges.