US Court Dismisses SEC Case Against Richard Heart, Hex

On Friday, a federal court rejected the lawsuit of the Securities and Exchange Commission against crypto entrepreneur Richard Heart and ruled that the agency did not establish personal jurisdiction about the American citizen established in Finland.

District judge Carol Bagley Amon thought that the SEC did not show that the heart had enough contacts with the US related to its crypto projects Hex, PulseChain and Pulsex.

The court rejected the argument of the SEC that the virtual performances of the heart at American conferences have established jurisdiction, and noticed that his presence was “aimed at another post-participating activum” and was to do this “insufficient to determine personal jurisdiction”.

The court did not ruled whether Heart and its companies have carried out sales or offers of securities under the SECs Purview, only that they surpassed the American authority.

“Here, in contrast to Plexcorps, the website contacts of the heart were not ‘active’,” Judge Amon written. “The complaint does not claim that Hart has faciled transactions, collected credit card information or entered into contracts with American investors via his websites.”

The SEC -PERTLE HART did not perform -registered crypto offers and raised more than $ 1 billion via hex, pulsechain and pulsex, used misleading “recycling” transactions to achieve more tokens, falsely on the market brought to the base of the securities of the securities of the effects of the effects of the effects of the features of a feat of the features of the effects of the deciches of features of the deciches of the deciches of the reversing of a. 2023 complaint.

Hart, by recycling, tried to create the false impression of a considerable trade volume and the organic demand for Hextokens, the regulator claimed.

The SEC also claimed that the heart was darkened “at least $ 12.1 million pulseChain investors funds for the personal luxury purchases of the heart, including a diamond of 555 carat, expensive watches and high-end cars.”

Despite those allegations, Judge Amon was that the online activities of the heart were not specifically aimed at American investors.

“The relevant online communication described in the complaint during the offer periods consist of non -oriented, worldwide information,” is the ruling.

Judge Amon has granted the sec 20 days to submit a changed complaint about the jurisdictional shortcomings.

In December Interpol gave his red notification for the heart, as a “request to law enforcement worldwide to find a person and to arrest for the time being pending extradition, surrender or similar legal action.”

Yet it is only a request, in which the organization explains at the time “a red notification is not an international arrest warrant”, and it remains as individual countries to decide whether they are acting on it.

Published by Sebastian Sinclair