In a rare legal defeat for the American Commission on Securities and Exchange, the Agency has officially abandoned its fraud file against Richard Schueler, better known as Richard Heart, founder of the crypto Projects Hex, Pulsechain and Pulsex.
On April 21, the SEC informed the Oriental District Court of New York.
“It ends the case with a complete victory for Mr. Heart,” said David Kirk, a partner at Kirk & Ingram LLP, who represented the hexagonal founder in an email in Coindesk. “To my knowledge, this is the only action of the application of the SEC against a participant in the cryptocurrency industry who was rejected in full by a federal judge.”
The court previously rejected the initial complaint of the SEC in February, citing a lack of jurisdiction.
Judge Carol Bagley Amon noted that Heart’s activities were not clearly intended for American investors, said Coindesk, undermining the case of the dry.
“This is a victory for open source software, cryptocurrency and freedom of expression. The SEC actually continued the software code itself in this case, saying that it could be an alter ego of a person,” posted on X. “It would have established a terrible previous one and may have caused several billion dollars of damage.”
Although the regulator has obtained the possibility of modifying the complaint, it refused to do so by the prolonged deadline of April 21.
The SEC initially brought an action in July 2023, accusing the heart of lifting more than a billion dollars thanks to offers of unregistered titles.
