Richard Heart, entrepreneur and philanthropist, has won a major legal battle against the Securities and Exchange Commission (SEC). A judge completely dismissed the SEC’s case against him and his cryptocurrency projects.
SEC’s Case Collapses
The SEC sued Heart in July 2023, alleging he raised over $1 billion through unregistered offerings of HEX, PulseChain, and PulseX, and misused investor funds. They even named his open-source crypto projects as co-defendants, a highly unusual move. The SEC claimed these projects were Heart’s “alter egos.”
However, the court rejected all of the SEC’s arguments. The judge ruled that the SEC lacked jurisdiction because the offerings were global, not specifically targeted at the US. The court also found no evidence of direct marketing to US investors or misleading communications. Fraud claims were also dismissed.
A Landmark Victory for Crypto
The SEC’s decision not to appeal means the case is officially over, with no findings of wrongdoing against Heart or his projects. This is seen as a significant win for the cryptocurrency industry and open-source development. Many legal experts believe this ruling is a major setback for the SEC’s aggressive approach to crypto regulation.
Heart himself celebrated the victory on Twitter, highlighting the unprecedented nature of the complete dismissal. Legal analysts are calling it a major blow to the SEC’s strategy, which has faced criticism for overreach and arbitrary actions.
What This Means
The dismissal gives HEX, PulseChain, and PulseX a level of legal certainty that’s rare in the crypto world. This victory is being hailed as a win for free speech, as it reinforces the idea that publishing open-source software is protected.