Cryptocurrency Entrepreneur Wins Legal Battle Against SEC

A federal judge dismissed a lawsuit by U.S. securities regulators against cryptocurrency entrepreneur Richard Heart, citing insufficient ties to the U.S. The SEC accused Heart of raising over $1 billion through unregistered offerings and defrauding investors. However, the judge deemed his actions as targeting a global, not specifically U.S., audience.

In a significant legal victory, a federal judge recently ruled in favor of cryptocurrency entrepreneur Richard Heart, dismissing a lawsuit filed by the U.S. Securities and Exchange Commission (SEC). The court found no substantial connection between Heart's actions and the United States, undermining the SEC's claims.

The SEC alleged that Heart had fraudulently raised over $1 billion through unregistered cryptocurrency offerings, further accusing him of misleading investors with promises of remarkable returns on assets like Hex tokens and PulseChain. Despite these allegations, the SEC's case lacked evidence of Heart's direct transactions with U.S. investors.

Judge Carol Bagley Amon highlighted the global reach of Heart's online statements, which were not directed specifically at U.S. audiences. Consequently, accusations of his misuse of investor funds for luxury purchases, including cars and a rare black diamond, were found to occur entirely abroad. Heart's supporters view this dismissal as a positive development for cryptocurrency ventures.

(With inputs from agencies.)