Hex (HEX) token surges over 75% after a US judge tossed a fraud case involving founder Richard Heart and the SEC

The token posted this meteoric pump in the past 24 hours, moving from around $0.00225 to its current price of $0.003972.

Hex (HEX), a token affiliated with Richard Heart’s PulseChain blockchain, surged over 75% after a US judge tossed a fraud case that the SEC filed against the founder.

The token posted this meteoric pump in the past 24 hours, recovering from around $0.00225 to its current price of $0.003972. Meanwhile, other assets linked to Richard Heart also surged substantially, with Pulsechain (PLS) and PulseX (PLSX) growing 34% and 61%, respectively.

This upward trajectory came after the US district court dismissed a legal contest that spanned several months and saw the US Securities and Exchange Commission (SEC) sue Heart for crypto fraud.

The presiding judge, Carol Bagley Amon, ruled on the case on Friday, acquitting the crypto founder of all fraud allegations.

Judge Amon ruled that the regulator’s claims fell outside the US jurisdiction. The court noted that the SEC could not prove that Heart’s crypto platform and wallets were within the US’s jurisdiction. This resulted in the dismissal.

“To the extent the complaint shows that Heart misappropriated investor funds through deceptive mixer transactions, those actions occurred entirely outside of the United States,” the judge stated.

One of the priced collections Heart allegedly bought was “The Enigma,” a 555.55-carat black diamond sold for $4.4 million in February 2022. The US citizen who resided in Finland also acquired McLaren and Ferrari sports cars and luxury Rolex watches.

#AuctionUpdate "The Enigma": This 555.55 carat Black Diamond sold today for £3,161,000 / $4,292,322. The buyer has opted to use cryptocurrency for the purchase. #SothebysJewels pic.twitter.com/ZuiL9SxET8

— Sotheby's (@Sothebys) February 9, 2022

The case began in July 2023, when the US SEC sued Heart for allegedly defrauding investors and raising $1 billion by selling unregistered securities.

According to the regulator, Heart’s crypto project, HEX, was a Ponzi scheme that defrauded users of $12.1 million, which he used for a lavish lifestyle.

However, Judge Amon did not agree with the SEC’s claims, ruling that the regulator’s case was "not plausible."

“Despite the breadth of the Complaint, the SEC has failed to sufficiently allege that any defendant's conduct falls within the extraterritorial scope of Section 5 of the Securities Act or Section 12(a) of the Securities Exchange Act,” Judge Amon said.

A Rare Win Against the SEC

Meanwhile, the PulseChain founder took to X to celebrate the “rare” victory against the US SEC. He tweeted that Amon correctly ruled that the tokens are not securities and can now flourish with other assets in the crypto space.

I appreciate Judge Amon's careful ruling which has dismissed all of the SEC's claims against me. This type of victory over the SEC is quite rare. PulseChain, PulseX and HEX are not securities and should be allowed to flourish. HEX has operated flawlessly for over 5 years. Today's…

— Richard Heart (@RichardHeartWin) February 28, 2025

According to the crypto entrepreneur, President Donald Trump’s support for the digital asset industry has brought regulatory clarity.

Furthermore, Heart appreciated Trump’s stance on crypto in his recent interview with Piers Morgan.

“It's nice to have the President of the United States on our side. I'm very grateful for President Trump's support of crypto and his stance against the SEC overreach,” Heart said.

The judge’s ruling on Friday also brings further relief to the project and the broader crypto industry as the case adds to the growing list of SEC litigations that are now underwater.

In the past week, the regulator dropped its legal battles with Coinbase (NASDAQ:COIN), Robinhood (NASDAQ:HOOD) and Gemini, among others.