ICAN [Investors Choice Advocate Network], a legal advocacy group supporting smaller firms and individuals targeted by the Securities and Exchange Commission, says it has won another case as the courts have dismissed the PulseChain case.
In 2023, the SEC filed charges against Richard Heart [aka Richard Schueler] and three separate firms, Hex, PulseX, and PulseChain, claiming they raised over $1 billion in an unregistered securities offering.
ICAN explains that its victory is significant as the SEC sought to label blockchain software programs as defendants. The ruling creates a precedent for future cases that attempt to sue software programs as “unincorporated alter ego entities.” ICAN states this is a dangerous precedent threatening the entire technology sector.
ICAN adds that while the defense team representing Schueler played a crucial role, their amicus brief played an important role.
ICAN argued: “You can’t sue the sidewalk or a piece of software.” The group called the SEC’s approach ridiculous.
The Judge overseeing the case has given the SEC 20 days to amend its complaint.