The Securities Exchange Commission (SEC) has rebutted an attempt by Hex founder Richard Heart to dismiss his lawsuit, saying it has the right to proceed with the case. The SEC accused Heart of raising more than $1 billion through an unregistered securities offering and using the funds for personal luxury purchases. Heart's lawyers countered that Hex, PulseChain and Pulse X were not securities and that Heart did not promise returns on investment and therefore did not constitute fraud. The SEC has maintained that the assets are investment contracts and fall under the category of securities. The next hearing in the case is scheduled for October 24.