PANews reported on March 1 that according to Bloomberg, a federal judge in Brooklyn, New York, dismissed the lawsuit filed by the US SEC against Richard Heart, the founder of cryptocurrency. The founder was accused of illegally using millions of dollars of investor funds to purchase a 555-carat black diamond. The SEC accused Heart of raising more than $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 agency stated in the initial lawsuit that Heart and PulseChain used at least $12.1 million of 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 facts to prove that these actions occurred in the United States, allowing the SEC to amend its complaint to "correct the defects found."