• A US judge ruled that the SEC lacked jurisdiction over Heart’s crypto activities.
• The SEC accused Heart of misappropriating $12.1 million for luxury purchases.

A US judge has dismissed the Securities and Exchange Commission’s (SEC) fraud lawsuit against Hex founder Richard Heart. The judge ruled that the US lacked jurisdiction over the case.

On February 28, US District Judge Carol Bagley Amon dismissed the SEC’s claims against Heart. The regulator accused him of raising over $1 billion through unregistered crypto offerings. It also alleged that he misappropriated $12.1 million to buy luxury items, including the world’s largest black diamond.

However, Amon ruled that the SEC failed to prove Heart’s activities targeted US investors. She stated that his alleged fraudulent actions occurred globally, not within US jurisdiction. The court also found no link between the misappropriated funds and the United States.

The SEC alleged that Heart spent investor funds on personal luxury purchases. These included McLaren and Ferrari sports cars, four Rolex watches, and a 555-carat black diamond called “The Enigma.” The regulator also claimed that his projects Hex, PulseChain, and PulseX were unregistered securities.

Despite these accusations, the judge ruled that the SEC could not prove the transactions occurred in the US. Heart’s promotions on YouTube and social media targeted a global audience. The court determined that this was not enough to establish US jurisdiction.

Heart Celebrates Legal Victory

Heart responded positively to the ruling. He stated that winning a case against the SEC is rare. He also emphasized that Hex has operated flawlessly for over five years.

Following the court’s decision, PulseChain, PulseX, and HEX saw a sharp increase in value. HEX surged 78%, PulseX rose 67%, and PulseChain gained 36%. Heart credited the ruling for the price surge and expressed relief over the outcome.

Despite his legal win in the US, Heart still faces challenges in Finland. Authorities arrested him in September 2024 on tax fraud and assault allegations. However, he remains missing, and Interpol issued a Red Notice against him in December. Authorities managed to seize $2.6 million worth of watches believed to belong to Heart. Meanwhile, he continues promoting his cryptocurrencies on social media.

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