TLDR

• U.S. Federal Judge dismissed SEC’s lawsuit against Richard Heart due to lack of jurisdiction over the Finland-based crypto entrepreneur
• SEC alleged Heart raised over $1 billion through unregistered crypto offerings of Hex, PulseChain, and PulseX
• Court ruled Heart’s virtual appearances and website activities weren’t specifically targeted at U.S. investors
• Interpol issued a red notice for Heart in December 2024 for tax fraud and assault accusations
• Finnish police seized $2.6 million worth of luxury watches from Heart in January 2025

In a recent development, a federal judge has dismissed the Securities and Exchange Commission’s lawsuit against crypto entrepreneur Richard Heart. The ruling came after the court determined the agency failed to establish personal jurisdiction over the Finland-based U.S. citizen.

District Judge Carol Bagley Amon issued the ruling on Friday. The decision focused solely on jurisdictional grounds rather than the merits of the SEC’s allegations against Heart’s crypto projects Hex, PulseChain, and PulseX.

The SEC had accused Heart of conducting unregistered crypto offerings that raised over $1 billion. The agency claimed he used deceptive “recycling” transactions to acquire more tokens and falsely marketed high staking returns.

According to the SEC’s 2023 complaint, Heart attempted to evade securities laws by framing investments as “sacrifices.” The agency also alleged he misappropriated at least $12.1 million of PulseChain investor funds for personal luxury purchases.

The court rejected the SEC’s argument that Heart’s virtual appearances at U.S. conferences established jurisdiction. Judge Amon noted that his presence “focused on a different post-offering asset” and was “insufficient to establish personal jurisdiction.”

The ruling emphasized that Heart’s website contacts were not considered “active.” The judge pointed out that the complaint failed to allege Heart facilitated transactions, collected credit card information, or entered into contracts with U.S.-based investors through his websites.

Judge Amon determined that Heart’s online activities weren’t specifically directed at U.S. investors. The court found that his communications during the offer periods consisted of “untargeted, globally available information.”

The SEC has been granted 20 days to file an amended complaint. The agency must address the jurisdictional deficiencies identified in the ruling to proceed with the case.

Global Pursuit

While Heart has prevailed against the SEC for now, he faces legal challenges internationally. In December 2024, Interpol issued a red notice for Heart, whose legal name is Richard Schueler.

The Interpol notice serves as a request to law enforcement worldwide to locate and provisionally arrest Heart. The notice cites tax fraud and assault accusations as the basis for the request.

In January 2025, Finnish authorities took action against Heart. Local police seized 20 luxury watches, most of them Rolexes, from his residence in Espoo, Finland.

The seized watches have an estimated value of $2.6 million. This action was part of an ongoing investigation into tax evasion by Finnish law enforcement.

Among the luxury items the SEC alleged Heart purchased with investor funds was a 555-carat diamond. The agency also cited expensive watches and high-end automobiles in their complaint.

The court’s decision highlights the complexities of establishing jurisdiction in cryptocurrency cases. Judge Amon’s ruling focused on the global nature of Heart’s online presence rather than the specific allegations of misconduct.

The SEC now faces the challenge of proving U.S. jurisdiction over Heart’s activities. The agency must demonstrate more direct connections between Heart’s crypto projects and U.S. investors to proceed with their case.