The U.S. Securities and Exchange Commission (SEC) has officially dropped its fraud lawsuit against Richard Heart, also known as Richard Schueler, the founder of HEX, PulseChain, and PulseX. The SEC confirmed it would not file an amended complaint after a federal judge, Carol Bagley Amon, dismissed the case in February 2025 for lack of jurisdiction and failure to state a claim. The deadline to amend the complaint expired on April 21. This case is reported to be the only SEC enforcement action in the cryptocurrency sector dismissed in its entirety by a federal judge. The SEC had originally accused Heart of raising over $1 billion through unregistered securities offerings and misusing investor funds for luxury purchases. Heart and his legal team noted that the SEC attempted to sue software code itself in this case. Richard Heart stated that HEX, PulseChain, and PulseX have now achieved regulatory clarity that is rare among cryptocurrencies. According to CoinGecko, HEX's price rose 12.7% in the 24 hours following news of the case's dismissal. Heart remains subject to an Interpol red notice and is listed among Europe's most wanted fugitives on charges of tax fraud and assault. Separately, the SEC has initiated a $198 million fraud case against Ramil Palafox, founder of PGI Global, as part of its ongoing crypto enforcement actions. Paul Atkins was recently sworn in as the new SEC chair.