The U.S. SEC has denied Hex founder Richard Heart's motion to dismiss the lawsuit, and the case will proceed

ChainCatcher news, according to TheBlock, the U.S. Securities and Exchange Commission (SEC) has rebutted Hex founder Richard Heart's attempt to dismiss the lawsuit against him, stating that it has the right to continue pursuing the case. The SEC accuses Heart of raising over $1 billion through the issuance of unregistered securities and using the funds for personal luxury purchases. Heart's lawyer argues that Hex, PulseChain, and Pulse X are not securities, and that Heart did not promise investment returns, thus not constituting fraud. The SEC insists that these assets are investment contracts and fall under the category of securities. The next hearing in the case is scheduled for October 24.

Previous report, on July 31, the SEC sued Hex and Pulsechain project founder Richard Heart for allegedly selling unregistered securities. The SEC claims that Richard Heart misappropriated at least $12 million of client funds for personal luxury purchases instead of developing the protocol, thereby deceiving investors.