SEC Lawsuit Against Richard Heart Dismissed Due to Jurisdictional Issues; Agency Given 20 Days to Amend Complaint

On October 31, 2024, U.S. District Judge Carol Bagley Amon in Brooklyn dismissed the SEC's lawsuit against Richard Heart, founder of Hex, PulseChain, and Pulsex, citing insufficient evidence to establish U.S. jurisdiction. The SEC had accused Heart of fraud and misappropriating at least $12 million. The judge ruled that the SEC failed to adequately connect Heart's activities to the United States, particularly regarding marketing efforts towards U.S. investors. While the SEC argued that Heart's appearances at U.S. conferences indicated intent to target U.S. investors, the judge deemed statements made after the offer period irrelevant. The ruling does not absolve Heart of the fraud allegations but focuses on the SEC's failure to prove a substantial effect within the U.S. The SEC has been granted 20 days to file an amended complaint to address the jurisdictional concerns. Heart celebrated the decision, stating it brings relief to all cryptocurrencies.