In a rare legal defeat for the US stock and values commission. UU., The agency has formally eliminated its fraud case against Richard Schueler, better known as Richard Heart, founder of the Crypto projects Hex, Pulschain and Pulsex projects.
On April 21, the SEC informed to the Eastern District Court of New York that it would not amend its complaint, effectively arriving in the case.
“That puts an end to his case with a complete victory for Mr. Heart,” said David Kirk, a partner of Kirk & Ingram LLP, who represented Founder Hex in an email to Coindesk. “As far as I know, this is the only application of the SEC application against a participant in the cryptocurrency industry that was completely dismissed by a federal judge.”
The court had previously dismissed the initial complaint of the SEC in February, citing a lack of jurisdiction.
Judge Carol Bagley Amon said that Heart’s activities were not clearly aimed at US investors, Coindesk previously reported, undermining the case of the SEC.
“This is a victory for open source software, cryptocurrency and freedom of expression. The SEC actually demanded the software code in this case, claiming that it could be an alter ego of a person,” Heart published in X. “This would have established a terrible precedent and perhaps caused multiple billions of dollars of damage to the open source source and the free software industry that turns on the most speech in him. “
Although the regulator was granted the opportunity to amend the complaint, he refused to do so on the extended deadline of April 21.
The SEC had originally filed a lawsuit in July 2023, accusing the heart of raising more than $ 1 billion through offers of unregistered securities.
