The post Court Rules SEC Lacks Jurisdiction Over Richard Heart Amid Crypto Manipulation Allegations Involving Hex and PulseChain appeared on BitcoinEthereumNews.com.

A recent court ruling has shifted the landscape for crypto regulation, as the SEC’s case against Richard Heart was dismissed due to jurisdiction issues. This dismissal underscores the challenges regulatory agencies face when pursuing international figures in the complex world of cryptocurrency. Judge Amon noted the SEC’s failure to establish jurisdiction, stating that activities conducted by Heart were not specifically directed at U.S. investors. The SEC’s jurisdictional defeat against Richard Heart reflects ongoing challenges in international crypto regulation as the landscape continues to evolve. Federal Court Dismisses SEC Case Against Crypto Entrepreneur Richard Heart The recent legal ruling by District Judge Carol Bagley Amon highlights a significant setback for the Securities and Exchange Commission (SEC) in its ongoing efforts to regulate the cryptocurrency sector. The court decided that the SEC had failed to demonstrate personal jurisdiction over Richard Heart, a Finland-based entrepreneur implicated in alleged securities violations tied to his crypto projects Hex, PulseChain, and PulseX. SEC’s Argument and the Ruling The SEC’s complaint alleged that Heart orchestrated unregistered offerings, raising approximately $1 billion while utilizing deceptive business practices. However, Judge Amon’s ruling indicated that the virtual nature of Heart’s interactions, even at U.S. conferences, was not enough to establish a legal connection with the jurisdiction. According to Amon, “Heart’s website contacts were not ‘active,’” and thus could not prove that he targeted U.S. investors effectively. The Implications of the Ruling This ruling could set a precedent for how regulatory bodies approach jurisdiction over international figures in the crypto space. The court acknowledged that while the SEC presented several serious allegations, including claims of misappropriating investor funds and manipulating token distribution through “recycling” transactions, the lack of jurisdiction means that these charges could not be pursued in U.S. courts. Challenges in Regulating Cryptocurrency As cryptocurrencies operate on a global scale,…

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Filed under: News - @ March 3, 2025 12:13 am