A federal judge has dismissed the demand of the United States and Securities Commission (SEC) against Richard Heart, the founder of Hex, Pulsechain and Pulsex, ruling that the agency lacked jurisdiction because the project did not specifically addressed US investors.
“The relevant online communications described in the complaint during the offer periods consist of information not directed worldwide,” Judge Carol Bagley Amon wrote in her ruling. “The SEC could not declare enough facts to suggest that Heart’s online statements were addressed to the United States instead of a global audience.”
According to the United States Securities Law, the SEC must demonstrate that a defendant was intentionally involved with the US market, but the court found that heart communications were “information not directed worldwide”, which could not demonstrate a deliberate effort to request US investors, and pointed out that tokens were not available in US exchanges.
The court also ruled that the participation of American people in the project did not grant the jurisdiction of the SEC that indicated that the complaint “simply alleges that an un specified number of investors based in the United States participated in the offers”, without demonstrating that transactions occurred in the United States.
The SEC has the option of appealing the failure or amending it within 20 days.
