Court grants motion to dismiss case against HEX founder Richard Heart, accused of running a pyramid scheme and facing fraud charges; SEC has 20 days to refile case
Following the development, there was a sudden increase in the HEX price.
The SEC accused Heart, who also uses the last name Schueler, of raising more than $1 billion by selling unregistered securities, including the Hex token, the PulseChain blockchain network and other digital assets tied to the PulseX decentralized finance platform.
Heart and PulseChain used at least $12.1 million in investor funds for personal luxury purchases, including diamonds, expensive watches and high-end cars, the agency said in its original lawsuit.
U.S. District Court Judge Carol Amon said the SEC “failed to establish specific facts” that showed the alleged conduct occurred within the U.S. For example, Amon said that despite the SEC’s allegations that Heart discussed the benefits of its PulseChain token on its website and YouTube, regulators “failed to allege that this conduct was directed at the United States.”
*This is not investment advice.
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