According to Bloomberg, a federal judge in Brooklyn, New York, has dismissed the lawsuit filed by the SEC against cryptocurrency founder Richard Heart. The founder is accused of illegally using millions of dollars in investor funds to purchase 555 carat black diamonds. The SEC accuses Heart of raising over $1 billion through the sale of unregistered securities, including Hex tokens and other digital assets related to its PulseChain blockchain network and PulseX decentralized financial platform. The institution stated in the initial lawsuit that, Heart and PulseChain used at least $12.1 million in investor funds for personal luxury purchases, including diamonds, expensive watches, and high-end cars. Judge Carol Amon believes that the SEC has failed to provide sufficient factual evidence to prove that these actions occurred in the United States, allowing the SEC to modify its complaint to 'correct the deficiencies identified'.
