Richard Heart, the founder of HEX, has taken a significant step in his legal battle against the Securities and Exchange Commission (SEC) by filing a Motion to Dismiss in the Eastern District of New York. This filing, deemed by Heart as one of the most crucial documents of his career, marks the culmination of years of preparation.
In his motion, Heart seeks the dismissal of the SEC’s lawsuit against him and his three cryptocurrency projects: HEX, PulseChain, and PulseX. The SEC alleges that Heart conducted unregistered securities transactions, raising over $1 billion in violation of US laws. The requested relief includes disgorgement of profits, fines, and permanent injunctions to prevent further harm to investors.
A motion to dismiss serves as the defendant’s initial argument to the court, challenging the jurisdiction and legal grounds of the lawsuit. Heart, represented by Quinn Emanuel attorneys, contends that he is not subject to US jurisdiction as he resides abroad and did not target US investors with his token offerings. Additionally, he asserts that none of his tokens constituted investment contracts and argues that his crypto activities are protected under the First Amendment.
Heart’s defense is framed not only as a defense of his financial interests but also as a defense of broader constitutional rights. However, similar arguments raised by crypto executives in the past have seen mixed success in court, with the SEC prevailing in the majority of cases.
Despite legal opinions suggesting potential violations as early as 2019, Heart persisted in promoting HEX and later founded PulseChain and PulseX. Now, the court will weigh the arguments presented by both government attorneys and Heart’s legal team to determine the legality of his actions.
As the legal battle unfolds, the outcome will not only impact Heart’s projects but also potentially set precedents for the regulation of cryptocurrencies in the United States.