Richard Heart's Crypto Projects Break Free as SEC Abandons Legal Pursuit Against HEX and PulseChain

After a dramatic legal standoff, the SEC has formally withdrawn from its case against Richard Heart and his cryptocurrency ventures HEX, PulseChain, and PulseX. Court documents filed with Judge Carol Bagley Amon of the U.S. District Court for the Eastern District of New York confirm the regulatory body will not submit a revised complaint, marking a significant shift in one of crypto’s most contentious battles.

The Turning Point: What Happened in Court

The SEC initially dismissed its own case on February 28, 2025, but granted itself until March 20 to file amendments. That deadline was subsequently extended to April 21. As that final window closed, regulators made their choice: rather than pursue a new legal strategy, the SEC decided to end its pursuit entirely. This decision effectively terminates all charges that were originally filed in July 2023.

Heart seized on this development immediately, framing it as a complete reversal for the agency. He emphasized that this represents something virtually unprecedented in crypto regulation—a situation where a major regulatory agency retreated entirely rather than restructure its claims. The original allegations had accused Heart of selling unregistered securities worth over $1 billion and personally misappropriating at least $12 million for luxury purchases including exotic vehicles, timepieces, and a 555-carat diamond. Regulators had specifically challenged HEX’s marketing as a “blockchain certificate of deposit” promising staking yields up to 38%, along with the tokenomics of PulseChain and PulseX offerings.

The Market’s Response: Recovery Amid Redemption

While the legal outcome provides clarity, the financial trajectory of Richard Heart’s projects tells a sobering parallel story. HEX now trades at a mere fraction of its former prominence—down 99.6% from its pre-legal-action high of $0.5108. The token currently sits at approximately 0.2% of that peak value.

However, the conclusion of litigation has triggered renewed interest. Recent price movements show momentum building: HEX rallied 14% within 24 hours following the SEC’s withdrawal announcement. Broader gains include a 50% surge across the previous week and a 30% annual increase, suggesting investors interpret regulatory clarity as a positive catalyst.

Implications for the Cryptocurrency Ecosystem

Richard Heart characterized this as the only instance where the SEC has suffered a complete courtroom defeat in a crypto matter. His assertion highlights a growing tension in digital asset regulation—whether agencies can sustain enforcement actions against decentralized software or whether such cases face structural limitations. The fact that no amended complaint materialized suggests either the SEC’s legal position proved insufficiently resilient to reformulate, or strategic considerations prompted the agency to reallocate resources elsewhere.

For HEX, PulseChain, and PulseX stakeholders, the outcome provides the regulatory relief Heart publicly emphasized: these projects now operate without the litigation cloud that shadowed operations for nearly two years. Whether that clarity translates into sustained recovery remains contingent on broader market conditions and the projects’ ability to rebuild credibility within a sector skeptical of both regulatory overreach and the figures championing alternative compliance models.