Condividi questo articolo
Federal Judge Dismisses SEC Case Against Richard Heart, Citing Lack of Jurisdiction
Heart raised over $1 billion across three different unregistered securities offerings, the SEC had alleged
Di Sam Reynolds
1 mar 2025, 2:05 a.m. Tradotto da IA
What to know:
- A federal judge dismissed the U.S. Securities and Exchange Commission’s lawsuit against Richard Heart, founder of HEX, PulseChain, and PulseX, due to lack of jurisdiction.
- The judge ruled that the SEC failed to prove that Heart's online statements were specifically targeted at U.S. investors, a requirement under U.S. securities law, and the participation of U.S. persons would not establish jurisdiction.
A federal judge has dismissed the U.S. Securities and Exchange Commission’s (SEC) lawsuit against Richard Heart, the founder of HEX, PulseChain and PulseX, ruling that the agency lacked jurisdiction because the project did not specifically target U.S. investors.
“The relevant online communications described in the Complaint during the offer periods consist of untargeted, globally available information,” Judge Carol Bagley Amon wrote in her ruling. “The SEC failed to plead sufficient facts to suggest that Heart’s online statements were purposefully directed to the United States rather than a global audience.”
STORY CONTINUES BELOW
Under U.S. securities law, the SEC must prove that a defendant intentionally engaged with the U.S. market, but the court found Heart’s communications were “untargeted, globally available information,” which failed to demonstrate a deliberate effort to solicit U.S. investors, and noted that the tokens were not available on U.S. exchanges.
The court also ruled that the participation of U.S. persons in the project did not give the SEC jurisdiction stating that the complaint “merely alleges that an unspecified number of U.S.-based investors participated in the offerings,” without demonstrating that transactions occurred in the U.S.
The SEC has the option to appeal the ruling or amend it within 20 days.
More For You
More For You
Fintech and Crypto Firms Seek Bank Charters Under Trump Administration: Reuters
Financial technology and crypto firms are increasingly applying for state or national bank charters, despite the community’s historical resistance to centralized banking.
What to know:
- Fintech and crypto firms are increasingly applying for bank charters, anticipating a more favorable regulatory landscape.
- Becoming a bank allows firms to accept deposits and lower borrowing costs but brings stricter oversight.
- Regulatory bodies have historically approved few new bank charters, though recent signals suggest a more streamlined process.
Top Stories
