Richard Heart's $1B SEC case dismissed

A U.S. judge has dismissed the Securities and Exchange Commission's (SEC) lawsuit against Richard Heart, the founder of Hex, PulseChain, and PulseX, citing a lack of jurisdiction over his crypto activities.

The SEC had accused Heart of raising over $1 billion through unregistered crypto offerings and defrauding investors of $12.1 million.

Judge Carol Bagley Amon of the District Court in Brooklyn, New York, ruled that the SEC failed to prove Heart specifically targeted U.S. investors.

The court found that Heart's online communications were "untargeted, globally available information" rather than a deliberate effort to solicit U.S. investors.

The judge also noted the tokens were not available on U.S. exchanges and that the SEC didn't provide enough evidence to prove that transactions occurred within the United States.

The SEC alleged Heart misused investor funds, spending $3.97 million on "The Enigma," a 555-carat black diamond, as well as $3.02 million on McLaren and Ferrari sports cars and four Rolex watches.

"The alleged misappropriation occurred through digital wallets and crypto asset platforms, none of which were alleged to have any connection with the United States," Amon stated in the ruling.

Heart celebrated the decision, calling it a victory for cryptocurrency.

"HEX has operated flawlessly for over 5 years. Today's decision in favor of a cryptocurrency founder and his projects over the SEC brings welcome relief and opportunity to all cryptocurrencies," Heart said in an X post.

Despite the dismissal, Heart, a U.S. citizen believed to be residing in Finland, still faces legal challenges.

Finnish authorities have issued an Interpol Red Notice for his arrest based on allegations of tax fraud and assault.

They have also seized approximately $2.6 million worth of luxury watches allegedly linked to him.

The SEC has the option to amend its complaint and refile within 20 days.