US judge tosses SEC fraud suit against Hex founder Richard Heart – BitRss

US judge tosses SEC fraud suit against Hex founder Richard Heart – BitRss – Crypto World News

Coin Telegraph 35 minutes ago
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A district court judge has dismissed the US securities regulator’s lawsuit accusing Hex founder Richard Heart of raising over $1 billion through unregistered crypto offerings and defrauding investors of $12.1 million.

Heart, whose real name is Richard Schueler, was also accused of spending those allegedly stolen funds on luxury items — including the world’s largest black diamond.

However, Judge Carol Bagley Amon said those alleged deceptive acts couldn’t be decided on as the Securities and Exchange Commission failed to establish that the US had jurisdiction over Heart’s crypto activities — which she said were global in scope and not specifically targeted at US investors.

“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 said in the Feb. 28 court ruling.

“To the extent the Complaint shows that Heart misappropriated investor funds through deceptive mixer transactions, those actions occurred entirely outside of the United States,” Amon added.

The crypto tokens that the SEC alleged were unregistered securities included PulseChain (PLS), PulseX (PLSX) and HEX ($0.00) (HEX) — which have increased around 36%, 67% and 78%, respectively, since Amon made the verdict.

Heart

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