A U.S. district court judge has dismissed the Securities and Exchange Commission’s (SEC) case against Richard Schueler, known as Richard Heart.
On February 28, Judge Carol Bagley Amon ruled that the charges were not connected to the United States, leading to the dismissal of the lawsuit. Despite this decision, Heart remains a fugitive, facing separate legal troubles in Finland.
SEC fails to establish jurisdiction
The SEC filed charges against Heart in July 2023, accusing him of raising over $1 billion through the sale of HEX (HEX), PulseChain (PLS), and PulseX (PLSX). The agency alleged that these were unregistered securities and that Heart misused $12.1 million in investor funds to purchase luxury items, including sports cars, Rolex watches, and a rare black diamond.
Judge Amon ruled that the SEC failed to establish a U.S. connection to the case. The court found that the alleged financial misconduct occurred through digital wallets and crypto platforms without direct ties to the United States. The SEC attempted to serve Heart with legal documents in Finland in November 2023 but was unsuccessful. In December 2024, Heart’s legal team tried but failed to have the case dismissed before the latest ruling.
HEX and PulseX prices surge amid legal developments
Following the court’s decision, the value of HEX and PLSX saw significant increases. According to Dexscreener.com, PLSX surged 70.60% within 24 hours, reaching $0.00004790 with a market capitalization of $6.59 billion. HEX rose by 65.67%, trading at $0.01619 with the same market capitalization. Both tokens experienced substantial spikes in trading volume.
Heart acknowledged the ruling on social media. On X, he wrote, “Case dismissed. Thank you, Judge Amon.” He remains active online, frequently posting about his accomplishments and criticizing his detractors. However, his YouTube channel, Heart Pulse Radio, has been inactive for two months.
Legal issues continue in Finland
While the SEC case has been dismissed, Heart still faces serious legal challenges in Finland. Authorities there have charged him with tax evasion, alleging that he failed to pay hundreds of millions of dollars in taxes between June 2020 and April 2024. He also faces an assault charge related to an incident involving a minor in February 2021.
The Finnish law enforcement team failed to find Heart but Interpol issued a red notice for his arrest in December. The Finnish authorities confiscated 20 luxury watches which a third party possessed on behalf of Heart in January. The sources indicate that Heart left Finland but authorities cannot determine his current location.