Natraymond
(Reuters) – A federal judge on Friday dismissed a lawsuit by U.S. securities regulators, with online entrepreneurs raising more than $1 billion through unregistered cryptocurrency offerings, scamming investors from $12.1 million to buy luxury, including the world’s largest black diamond.
Brooklyn US District Judge Carol Bagley Amon cited the lack of relations between Richard Hart and the United States in deciding to cast a 2023 lawsuit against Hart, a US citizen living in Finland.
The SEC claimed that Hart, also known as Richard Schuler, had promoted HEX tokens, Pulsex Asset Trading Platform and Pulsechain Asset Network on YouTube and other websites as a path to “massive wealth.”
The SEC in the suit said the heart frequently knew that his “tongue of the tongue” disclaimer was not a security. That includes when the hex said that annual revenue of 38% is possible and “built to be the highest valuation asset that has existed in human history.”
He was also accused of spending Palseshane’s investor funds on McLaren and Ferrari sports cars, and “Enigma” that used £316 million (and subsequently $4.28 million) of “Enigma.”
However, Amon said the online statement in question was directed at global audiences, not specifically US audiences, and the SEC did not claim that he was engaged in dealings with US-based investors through his website.
As long as the complaint argues that investor funds were misappropriated through deceptive transactions, these actions took place entirely overseas, the judge wrote.
“The allegations of false appropriation occurred through digital wallets and cryptocurrency platforms, but none of them were said to have anything to do with the US,” writes Amon.
A Heart spokesman said in a statement of the judge’s ruling, “in favours the founders of cryptocurrency, and his project around the SEC will bring welcome relief and opportunities to all cryptocurrencies.”
The SEC did not respond to requests for comment.
(Reporting by Nate Raymond of Boston, edited by Leslie Adler and Muralikumal Anantalaman)