Richard Heart (HEX) Detained in Istanbul Over $1B Fraud Allegations

Turkey's Justice Minister Akın Gürlek officially confirmed the Oct. 14 detention of Richard James Schueler — known in crypto circles as Richard Heart — the founder of HEX, PulseChain, and PulseX. Schueler was apprehended in Istanbul's Beşiktaş district alongside his wife and three bodyguards.

Details

The operation covered 15 properties across three districts of Istanbul, coordinated by police intelligence, financial crime investigators, and Turkey's National Intelligence Organization (MİT). Seized items include $7.15 million in U.S. cash, 160,000 Turkish lira, six cryptocurrency cold wallets (contents undisclosed), 29 phones, 12 laptops, 11 computer cases, 19 storage drives, 46 USB devices, and 7 graphics cards. Authorities also confiscated a collection of 300 bags, 100 pairs of shoes, 136 eyeglass frames, 28 watches, 97 pieces of jewelry, 7 firearms with 1,400 rounds of ammunition, and several luxury vehicles.

The Justice Minister stated that an INTERPOL red notice had been issued against Schueler in connection with allegations of "$1 billion cryptocurrency fraud," reportedly in the United States. Finnish authorities are separately investigating him for aggravated tax fraud involving hundreds of millions of euros.

What It Means for the Market

The detention marks an escalation after years of legal battles: a U.S. federal court dismissed the SEC's 2023 lawsuit against Schueler in February 2025 on jurisdictional grounds after the SEC declined to amend its complaint. The case has now moved into criminal territory backed by INTERPOL, with at least two countries — the U.S. and Finland — involved. HEX and PulseChain had already lost most of their market value before this development. For the broader crypto market outlook, see today's brief.