A federal judge has rejected the US securities and the exchange commission’s (SEC) lawsuit against Richard Heart, the founder of Hex, PulseChain and Pulsex, and gave up that the agency lacked jurisdiction because the project did not specifically target us investors.

“The relevant online communication described in the complaint during the offer periods consists of unmarried, globally available information,” Judge Carol Bagley Amon wrote in his decision. “SEC failed to invoke sufficient facts to suggest that Heart’s online statement was targeted at the United States rather than a global audience.”

According to the US Securities Act, SEC has to prove that a defendant intentionally engaged in the US market, but the court found that Heart’s communication was “mandatory, globally available information” that could not demonstrate a conscious effort to request US investors, noting that tokens were not available on US exchanges.

The court also gave up that the US persons’ participation in the project did not give the sec jurisdiction that the complaint “simply claims that an unspecified number of US-based investors participated in the offers,” without demonstrating that transactions occurred in the US

SEC has the option of appealing the decision or changing it within 20 days.