1. SEC Charges
2. Heart's Response and Defense
3. Free Speech Argument

The US Securities and Exchange Commission (SEC) has opposed Hex founder Richard Heart's attempt to dismiss its $1 billion fraud lawsuit.

SEC Charges

According to the official SEC document, from December 2019 to November 2020, Heart marketed Hex as a crypto asset promising consistent increases through staking. Heart claimed Hex was the 'highest appreciating asset ever,' attracting significant investments. Investors poured in $678 million in ETH, but Hex's value fell by 98.4% from its peak as of July 2023. The SEC also alleges Heart raised over $354 million for PulseChain and PulseX, using funds for personal luxury purchases.

Heart's Response and Defense

Richard Heart argued in his dismissal motion that the SEC lacked jurisdiction since he resided abroad and had no presence in the US during the relevant period. The SEC disagreed, pointing to Heart's virtual conferences and interviews aimed at US investors.

Free Speech Argument

Heart also claimed the SEC's case infringes on his free speech rights as the regulator used his comments to allege securities offerings. The SEC dismissed this argument as 'untenable.'

The SEC continues to assert its jurisdiction in the case against Richard Heart, highlighting the serious allegations and significant investor losses.