SEC Drops Case Against Hex Creator Richard Schueler After Court Dismissal

The U.S. Securities and Exchange Commission has officially decided against refiling its legal action targeting Hex founder Richard Schueler (known professionally as Richard Heart). The regulator had originally pursued charges alleging unlawful distribution of three digital assets: HEX, PulseChain, and PulseX.

A court previously rejected the SEC’s initial complaint, finding insufficient evidence to demonstrate that the defendant’s actions harmed American investors. Following this ruling, the SEC allowed its deadline to submit an amended complaint to pass without taking action.

The Legal Battle and Its Implications

Richard Schueler responded to the agency’s withdrawal by declaring total victory, framing the outcome as a win not only for himself but for cryptocurrency innovation, decentralized software development, and constitutional free speech protections. He highlighted that the SEC’s original allegations had extended to prosecuting “the underlying software code,” suggesting an aggressive regulatory overreach.

The enforcement history behind this case runs deep. The SEC had originally accused Schueler of orchestrating illegal fundraising exceeding $1 billion across the three projects and had issued an international arrest warrant while he was in Finland.

Market Context

On the token side, HEX has experienced significant downward pressure, retreating 76% from its peak reached in December 2024. This price movement reflects broader market dynamics and investor sentiment surrounding both the project and the regulatory uncertainty it faced.

Broader Regulatory Trends

The SEC’s decision to abandon this case represents part of a wider pattern. Throughout the current year, the agency has withdrawn multiple enforcement actions related to cryptocurrency projects, signaling potential shifts in regulatory strategy or internal recalibration of legal priorities.