Richard Heart arrest in Istanbul sinks HEX token

Turkish authorities detained Hex and PulseChain founder Richard Heart in Istanbul on Wednesday, local media reported, in a case tied to an Interpol Red Notice over tax fraud and assault allegations in Finland. The Richard Heart arrest sent the HEX token down nearly 30% within a day. Police have not publicly confirmed details of what was seized.

What happened

CoinDesk, citing Daily Sabah, said Heart, whose legal name is Richard James Schueler, was detained with his wife at a property in Istanbul's Beşiktaş district in a joint operation by police and intelligence officers. Turkish media reported the seizure of $4 million in cash, 64 luxury watches, firearms and electronic equipment. Cointelegraph cited news agency IHA as reporting hardware wallets and jewelry among the items taken.

HEX fell to about $0.0006 by 11:28 a.m. UTC on Thursday, cutting its market capitalization from more than $500 million to $340 million, Cointelegraph reported, citing CoinMarketCap. The token traded above $0.44 at its September 2021 peak.

A spokesperson for Finland's National Bureau of Investigation declined to comment, according to Cointelegraph. Heart had also appeared on Europe's most-wanted fugitives list over the same allegations.

The detention comes nearly two years after Interpol issued the Red Notice at Finland's request, Cointelegraph said. CoinDesk noted that Turkish police have yet to confirm the cash and watch figures reported by local media.

The most-wanted listing alleges that Heart physically assaulted a 16-year-old victim, Cointelegraph reported. Those claims remain allegations and have not been tested in court.

Why it matters

The Richard Heart arrest revives a legal saga that U.S. regulators had largely closed. In 2023 the SEC charged Heart with raising more than $1 billion through unregistered offerings tied to Hex, PulseChain and PulseX, and accused him of misappropriating at least $12 million of investor funds.

A federal judge dismissed that case in February 2025, ruling that the activity was not sufficiently directed at U.S. investors, and the SEC said in April 2025 it would not refile. The Finnish matter is a separate criminal case, so the U.S. outcome offers no protection abroad.

The 30% slide in a day shows how tightly HEX still trades on its founder's fortunes. Liquidity in tokens like this can thin out fast when holders rush for the exit on legal headlines.

The arrest also tests the ecosystem Heart built around HEX, PulseChain and PulseX. Each was promoted heavily around its founder, and the SEC complaint named all three projects, which leaves holders exposed to headline risk from a case they cannot influence. Market reaction outside HEX has so far been limited, since none of the larger tokens moved on the news.

What's next

The next steps are whether Turkey moves to extradite Heart to Finland and whether authorities confirm the reported seizures. Court filings in Istanbul would offer the first official account of the case.

Holders will also watch whether the reported seizure of hardware wallets turns into any on-chain movement of funds tied to Heart. Large transfers from known addresses would quickly show up on public explorers and could add selling pressure to an already thin market.

Enforcement against crypto founders has taken very different paths, from the Mashinsky settlement in New York to the SEC's charges against Cryptoaiml and TSAI. After the Richard Heart arrest, his fate now sits with foreign prosecutors rather than U.S. regulators.