Richard Heart, the controversial founder of HEX, PulseChain and PulseX, was reportedly arrested in Istanbul, Turkey, following an international investigation connected to allegations of aggravated tax fraud in Finland. Turkish media reported that authorities detained Heart and his wife during an October 14 operation involving Turkish intelligence and police. Investigators allegedly seized approximately $4 million in cash, 64 luxury watches, electronic devices and firearms. The news triggered sharp declines in cryptocurrencies associated with Heart, including HEX and PulseChain’s PLS token.
Richard Heart, whose legal name is Richard James Schueler, was reportedly detained on October 14 at a residence in Istanbul’s Beşiktaş district.
According to Turkish media, the operation involved the country’s National Intelligence Organization (MİT) and Istanbul police.
Authorities reportedly monitored the residence before conducting the raid.
Investigators allegedly seized:
Approximately $4 million in cash
64 luxury watches
Mobile phones, laptops and other electronic equipment
Firearms and ammunition
Jewelry and other valuables
Heart’s wife was also reportedly detained during the operation.
The seizure figures vary across Turkish media reports, and authorities had not publicly confirmed the complete inventory at the time of reporting.
Heart has been wanted by Finnish authorities since 2024 in connection with allegations of aggravated tax fraud.
Finland requested an Interpol Red Notice after investigators accused him of failing to meet substantial tax obligations.
Finnish authorities have also investigated a separate alleged assault involving Heart.
An Interpol Red Notice requests that law enforcement agencies locate and provisionally detain an individual pending extradition or other legal proceedings.
A Red Notice is not an international arrest warrant, and it does not establish that the individual is guilty of a crime.
Turkish authorities have not publicly announced whether Heart will be extradited to Finland.
The reported detention remains separate from his previous legal proceedings in the United States.
Cryptocurrencies associated with Heart experienced substantial selling pressure as news of his reported detention circulated.
Market figures reported on October 14 showed:
HEX (HEX): Down approximately 25% to 40%, depending on the reporting time.
PulseChain (PLS): Down approximately 35% to 36% over 24 hours.
Both cryptocurrencies had already suffered significant long-term declines before the latest news.
HEX was trading more than 99% below its 2021 peak of approximately $0.44, while PLS had declined nearly 98% since its 2023 launch.
The additional selloff reflects renewed uncertainty surrounding projects closely associated with Heart’s public identity and leadership.
Heart has faced major regulatory scrutiny before.
In July 2023, the U.S. Securities and Exchange Commission filed a lawsuit against Heart and entities associated with HEX, PulseChain and PulseX.
The SEC alleged that Heart conducted unregistered cryptocy securities offerings that raised more than $1 billion.
Regulators also accused him of misappropriating at least $12 million in investor funds to purchase luxury items, including:
High-end sports cars
Expensive watches
Designer clothing
A 555-carat black diamond known as The Enigma
However, the U.S. lawsuit did not result in a finding that Heart committed those alleged violations.
In February 2025, a federal judge dismissed the SEC’s lawsuit against Heart on jurisdictional grounds.
The court found that the SEC had not sufficiently established that the relevant conduct was directed toward U.S. investors.
The regulator subsequently declined to file an amended complaint before its April 2025 deadline, ending the case.
Heart’s attorney characterized the dismissal as a complete legal victory.
However, the dismissal was based on jurisdiction rather than a court determination that the underlying allegations were false.
The Finnish tax investigation and the reported Turkish detention are separate matters and were not resolved by the U.S. ruling.
Several questions remain unanswered following the reported arrest.
Turkish and Finnish authorities have not publicly provided complete details regarding Heart’s legal status or the next steps in the investigation.
Key developments to watch include:
Official confirmation of his custody status
Whether Finland formally seeks extradition
Any additional charges filed in Turkey
The outcome of Finland’s tax fraud investigation
The effect on HEX, PulseChain and PulseX
No conviction has been reported in connection with the Finnish allegations.
The reported arrest also does not automatically shut down the blockchain networks or cryptocy tokens associated with Heart.
Heart became one of cryptocy’s most recognizable and controversial personalities through his promotion of HEX and later PulseChain.
His projects attracted supporters who viewed their token economics and blockchain infrastructure as innovative, while critics questioned their financial structures and marketing practices.
The latest developments introduce additional uncertainty for investors who hold cryptocurrencies closely associated with Heart.
Although the previous SEC case ended in 2025, the Finnish investigation remains a separate legal matter.
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