On March 1st, COINOTAG reported that a federal judge in **Brooklyn, New York**, has dismissed the **U.S. SEC’s lawsuit** against cryptocurrency entrepreneur **Richard Heart**. The SEC had accused Heart of misappropriating investor funds, purportedly utilizing millions to acquire a **555-carat diamond**. The complaint detailed that Heart allegedly raised over **$1 billion** through the sale of unregistered securities, notably the **Hex token** and various digital assets related to his initiatives, including the **PulseChain** blockchain network and the **PulseX decentralized finance platform**. This ruling marks a significant moment in the ongoing regulatory scrutiny faced by the cryptocurrency sector, showcasing the interplay between innovative fundraising approaches and regulatory compliance. Industry watchers are keenly observing the implications of this case as it unfolds, particularly its potential impact on the regulatory landscape surrounding digital assets.