- SEC dismisses fraud case against HEX founder Richard Heart.
- Heart claims victory, saying ruling protects open-source crypto.
- Heart still faces European charges for tax evasion and assault.
The U.S Securities and Exchange Commission (SEC) has terminated its legal case against Richard Heart, the founder of the HEX. In 2023 the SEC filed a case against Heart where they accused him of securities fraud linked to the marketing of the cryptocurrency project. However, a federal court dismissed the case which prompted the SEC to abandon its charges against Richard Heart.
The judicial decision is a major victory for a crypto project against the SEC. Richard Heart, the founder of PulseChain and PulseX, described the dismissal as a major legal success. Heart states that this court decision provides clarity to the cryptocurrency industry because the case could harm open-source software and cryptocurrency. He warned that the lawsuit could have a negative influence in the regulation of software code.
The SEC accused Heart of defrauding investors through fake promises about HEX’s substantial profits but spent millions in investment on luxury items. The SEC requested the court to restrict Heart and his crypto projects from further token distribution as the commission recovered the illegally obtained profits. Furthermore the lawsuit analyzed Heart’s fake promises to investors about the project’s potential to generate massive wealth and his deceptive marketing activities.
HEX and Founder Faces Legal Trouble In Europe
However, Heart still faces legal challenges in Europe. Heart is under investigation by Finnish authorities for suspected tax evasion and alleged physical assault on a minor. In 2024, Finnish media revealed that authorities were investigating Heart due to inconsistencies discovered in his income statements. Moreover, police confiscated luxury assets worth millions of euros during the investigation.
Industry experts have continuously criticized the project and compared its operations to a Ponzi scheme. Critics have raised concerns about the sustainability of the project which offers up to 38% in annual yields. Moreover, reports reveal that Heart owns a substantial amount of HEX tokens which raises questions about the project’s long-term sustainability.
Price Action
The price of HEX experienced a slight increase after the SEC dismissed the case. However, price has experienced minimal movement since the SEC started the case. HEX currently trades at $0.002253, with low transaction volume which indicates weak demand from investors.
Heart’s legal success provides a minor relief for HEX and its supporters. However, HEX faces an uncertain future because of current legal challenges in Europe as well as concerns about its business structure. HEX must sustain market growth and attract new users to survive in the competitive cryptocurrency sector.