The federal judge rejects the SEC case against Richard Heart, stating the lack of jurisdiction

The federal judge rejected A lawsuit of the US Securities Commission (sec) Against Richard’s heart, founder of Hex, Pulsechain and Pulsex, the judgment that the agency lacks jurisdiction Because the project did not specifically target US investors.

“Relevant internet communications described in the complaint during the offer period consist of intact, globally available information,” Judge Carol Bagley Amon wrote in her judgment. “The Sec’s failed to declare enough facts that he suggests that Heart’s internet statements were deliberately directed towards the United States, not a global audience.”

According to the US Securities Law, SEC must prove that the defendant was deliberately engaged with the US market, but the court found that heart communications were “unauthorized, globally available information”, which did not show the intentional effort to seek US investors and noted that tokens were not available on US exchanges.

The court also ruled that the participation of US persons in the project did not give the SEC jurisdiction stating that the appeal “only claims that an indefinite number of investors based in the US participated in bids” without showing that transactions occurred in the US, SEC has the opportunity to appeal to the verdict or change within 20 days.