US Judge Dismisses SEC Fraud Case Against Hex Founder Richard Heart

A federal judge has dismissed a lawsuit by the U.S. Securities and Exchange Commission (SEC) against Richard Heart, founder of the Hex cryptocurrency, who was accused of raising over $1 billion through unregistered offerings and defrauding investors to fund a lavish lifestyle, including purchasing a 555-carat black diamond. Judge Carol Bagley Amon ruled that the SEC failed to establish jurisdiction as Heart’s activities were global and not specifically targeted at U.S. investors. Although the SEC claimed Heart misappropriated funds from U.S. investors, the judge noted that his online promotions were directed to a global audience, with no evidence of U.S.-based transactions. Following the ruling, the Hex token saw a significant price increase, reflecting market optimism. Amon has allowed the SEC to amend its complaint to address the deficiencies identified in the case. This dismissal highlights the challenges regulators face in prosecuting financial misconduct that crosses international borders.