Online reports, Bloomberg reported that a federal judge in Brooklyn, New York, has rejected a lawsuit filed by the US SEC against cryptocurrency founder Richard Heart. The founder is accused of illegally using millions of dollars in investor funds to purchase 555 carats of black diamonds. The SEC accuses HeartLink of raising more than $1 billion by selling unregistered securities, including Hex tokens and other digital assets associated with its PulseChain blockchain network and the PulseX decentralized financial platform. In its original lawsuit, the agency said 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 argued that the SEC failed to provide sufficient facts to prove that the behaviors occurred in the United States, allowing the Securities and Exchange Commission to revise its complaint to "correct the discovered flaws."