The United States Securities and Exchange Commission (SEC) has opposed Hex founder Richard Heart’s move to dismiss its $1 billion securities lawsuit, asserting its jurisdiction in the case.
SEC’s Main Arguments
In its opposition filed in a New York federal court on August 22, the SEC argues that Heart, in his motion to dismiss all charges, disregards well-pleaded allegations and applicable law. Heart, meanwhile, claims that the regulator lacks authority over him as he resides abroad and did not set foot in the U.S. during the pertinent period.
Richard Heart’s Counteractions
In his dismissal motion filed on August 22, Richard Heart argues that the SEC has not demonstrated any conduct directed at the U.S. or interactions with U.S.-based entities or individuals. The SEC counters by asserting that Heart made virtual appearances before U.S. audiences and gave interviews promoting HEX, PulseChain, and PulseX.
Extravagant Spending by Heart
The SEC reiterates its allegations that Heart utilized millions of dollars from PulseChain investors to purchase luxury items, such as watches, cars, and 'the world’s largest black diamond.' The regulator claims that Heart raised over $350 million, ostensibly for platform development, but spent more than $12 million on personal luxuries.
The next hearing in the case is scheduled for October 24.
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