PulseX founder wins court battle, SEC lawsuit dismissed, crypto assets rise by 40%
The businessman is accused in the U.S. and Europe
The U.S. District Court for the Eastern District of New York dismissed the Securities and Exchange Commission’s (SEC) lawsuit against Richard Schueler (also known as Richard Heart), the founder of the decentralized exchange PulseX and several other crypto projects.
The SEC accused Schueler-Heart of raising over $1 billion through unregistered crypto offerings and misappropriating $12.1 million in investor funds to purchase luxury items, including McLaren and Ferrari sports cars, $3 million worth of Rolex watches, and the world’s largest black diamond valued at nearly $4 million.
However, the court ruled that the defendant’s activities did not fall under U.S. jurisdiction. The judge stated that transactions involving digital assets were conducted through global platforms and wallets unrelated to the U.S. market. As a result, the fraud charges could not be considered in an American court.
Heart took to his X account to thank the court and Donald Trump for the ruling, calling it a rare decision.
“PulseChain, PulseX, and HEX are not securities and should thrive. HEX has been running flawlessly for over five years. Today’s ruling in favor of a crypto founder and his projects against the SEC brings long-awaited relief and opportunities for all cryptocurrencies. Thank you, President Trump, for supporting crypto,” wrote Richard Schueler (Heart).
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Despite the victory, the battle continues
Following the ruling, crypto assets associated with Heart—PulseChain (PLS), PulseX (PLSX), and HEX—surged in price by 40% or more.
HEX price dynamics for 24 hours. Source: CoinMarketCap
However, the SEC has the right to file an amended lawsuit by March 20, 2025. Additionally, the entrepreneur remains wanted by Finnish authorities on charges of tax fraud and assault. Nevertheless, his whereabouts are unknown, and he continues to be active on social media, promoting his crypto projects.
As we wrote, Interpol has issued a red notice for Richard Schueler, known in the crypto community as Richard Heart, the founder of the decentralized exchange PulseX and several other projects.
