Federal Judge Dismisses SEC Lawsuit Against Crypto Founder

According to CoinDesk, a federal judge has dismissed the lawsuit filed by the U.S. Securities and Exchange Commission (SEC) against Richard Heart, the founder of HEX, PulseChain, and PulseX. The court ruled that the SEC lacked jurisdiction as the projects did not specifically target U.S. investors. Judge Carol Bagley Amon stated in her ruling that the online communications cited in the complaint were globally available and not directed specifically at the United States.Under U.S. securities law, the SEC is required to demonstrate that a defendant intentionally engaged with the U.S. market. However, the court found that Heart's communications were untargeted and globally accessible, failing to show a deliberate effort to solicit U.S. investors. Additionally, it was noted that the tokens were not available on U.S. exchanges, further weakening the SEC's case.The court also addressed the participation of U.S. persons in the project, stating that the SEC's complaint only alleged that an unspecified number of U.S.-based investors participated in the offerings. The complaint did not provide evidence that transactions occurred within the United States, which is necessary for the SEC to establish jurisdiction. The SEC now has the option to appeal the ruling or amend its complaint within 20 days.