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The SEC sued Richard Heart and the projects Hex, PulseChain and PulseX in 2023, alleging unregistered crypto asset securities offerings and fraud. In February 2025, a federal court dismissed the claims on jurisdictional and statutory-reach grounds—not after a trial deciding whether the SEC’s allegations were true. That distinction is central to understanding what the ruling did and did not establish.
What the SEC alleged in its 2023 lawsuit
On July 31, 2023, the U.S. Securities and Exchange Commission announced a civil action in the U.S. District Court for the Eastern District of New York against Richard J. Schueler, known as Richard Heart, and Hex, PulseChain and PulseX. The SEC alleged that the defendants conducted unregistered offerings of crypto asset securities. It also alleged fraud against Heart and PulseChain, including misappropriation of offering proceeds. These were allegations in the agency’s complaint, not findings by a court. SEC Litigation Release No. 25794 (July 31, 2023); SEC complaint.
The SEC said the offerings raised more than $1 billion in crypto assets. It further alleged that Heart and PulseChain misappropriated at least $12 million of offering proceeds for luxury purchases, including cars, watches and a black diamond. Both amounts describe the SEC’s allegations; they are not judicially established losses or findings of wrongdoing. SEC Litigation Release No. 25794 (July 31, 2023).
Projects, tokens and alleged offering periods
In its release, the SEC described Heart as marketing Hex as a high-yield “blockchain certificate of deposit.” The complaint alleged that the Hex offering ran from approximately December 2019 through at least November 2020. The SEC also associated the PulseChain and PulseX offerings with the PLS and PLSX tokens, respectively, and alleged those offerings took place between at least July 2021 and March 2022. These descriptions and periods are the agency’s account in the case. SEC Litigation Release No. 25794 (July 31, 2023); SEC complaint.
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What the court decided—and what it did not
On February 28, 2025, the Eastern District of New York issued a memorandum and order addressing Heart’s motion to dismiss. It dismissed claims on personal-jurisdiction and statutory-reach grounds. The ruling therefore resolved legal questions about whether the claims could proceed in that court under the grounds addressed; it was not a trial verdict on whether the alleged fraud occurred or whether the SEC proved its factual claims. Eastern District of New York memorandum and order (February 28, 2025).
On personal jurisdiction, the court wrote: “Accordingly, ‘a focus on the relationship of [Heart], the forum, and [Heart’s] suit-related conduct points to the conclusion that there is no specific personal jurisdiction over [Heart]’ for the PulseChain Fraud Claims in this case.” That is a case-specific conclusion about the court’s authority over Heart for those claims, not a finding about the truth of the underlying allegations. Eastern District of New York memorandum and order (February 28, 2025).
| Question | What the available case materials establish |
|---|---|
| What did the SEC claim? | The SEC alleged unregistered offerings involving Hex, PulseChain and PulseX, and alleged fraud against Heart and PulseChain. These are allegations, not court findings. SEC (2023); complaint. |
| What did the February 2025 order decide? | It dismissed claims on personal-jurisdiction and statutory-reach grounds. District court order (2025). |
| Did the order decide whether the alleged fraud was proven? | No. The dismissal described here was not a factual finding after trial. District court order (2025). |
| Did the order determine the tokens’ status in every setting? | No. It addressed the claims and grounds in this case; it should not be read as a universal determination for every context or jurisdiction. District court order (2025). |
What is known about the case after the dismissal
An April 23, 2025 report by The Block said the SEC notified the court that it did not intend to file an amended complaint. That report is a contemporaneous secondary account, not confirmation of the case’s current appellate or final docket status. The available materials do not establish whether an appeal occurred or provide a verified current final status. The Block (April 23, 2025).
Accordingly, it is accurate to say that the district court dismissed claims on the stated grounds and that a later report described the SEC’s decision not to amend. It would go beyond the established information to say that no appeal occurred or that the case’s final docket status is confirmed.
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Best Value
- Hex Crypto Hex Cryptocurrency
- Hex Crypto Hex Cryptocurrency
- Hardcover journal with 240 line-ruled pages (120 sheets)
- Built-in elastic closure and ribbon bookmark
- Includes an expandable inner storage pocket and a pen holder
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