Crypto Case Tests SEC’s Ability to Police Blockchain Technology

Richard Heart, who founded and marketed the crypto token Hex, is accused by the Securities and Exchange Commission of selling unregistered securities and illegally using investor funds to buy luxury goods, including a $1.38 million Rolex watch and a 555-carat black diamond known as “The Enigma.” Heart is asking a federal judge to dismiss the SEC’s case.

The case is a test of law enforcement’s reach in policing borderless crypto transactions. It also underscores questions about liability and who—or what—can be named as defendants as the US government cracks down on decentralized finance platforms, and as currencies such as Bitcoin have once again surged in trading.

The SEC has appointed itself the “global governor of blockchain technology,” lawyers for Heart, who lives in Finland, said in an April court filing. The SEC’s response is due in the coming weeks.

Source: Crypto Case Tests SEC’s Ability to Police Blockchain Technology