Richard Heart, the founder of cryptocurrency projects HEX, PulseChain and PulseX, was reportedly detained in Istanbul on October 14, 2026, during an operation involving Turkish police and the country’s National Intelligence Organization. Heart, whose legal name is Richard James Schueler, was detained at a residence in Istanbul’s Beşiktaş district, according to Turkish news agency İhlas Haber Ajansı and subsequent local media reports.
The operation was reportedly linked to an Interpol Red Notice requested by Finnish authorities in connection with allegations of aggravated tax fraud. Reports indicate that Heart’s wife was also detained and that investigators seized cash, luxury watches, electronic equipment and firearms. However, Turkish authorities and Interpol had not independently confirmed the detention when initial reports emerged.
Finnish Investigation Leads to Istanbul Operation
Finnish authorities began pursuing Heart in 2024 over suspected aggravated tax fraud and a separate alleged assault. A Finnish court ordered his detention in absentia in September 2024, and Interpol subsequently published a Red Notice requesting international assistance in locating him. The tax investigation concerns alleged financial misconduct between 2020 and 2024, with Finnish authorities previously indicating that the suspected unpaid taxes could total hundreds of millions of euros. A Red Notice is not an international arrest warrant. It requests that participating countries locate and provisionally detain an individual pending potential extradition or other legal proceedings.
Turkish reports indicate that police conducted surveillance before carrying out the operation in Istanbul. Accounts of the assets seized differ substantially. Some Turkish outlets reported approximately $4 million in cash and 64 luxury watches, while other reports provided lower figures and additional inventories of jewelry, computers and weapons. These figures remain unverified and should not be treated as confirmed confiscation totals. It is also unclear whether Turkish prosecutors have initiated separate proceedings or whether Finland has formally requested extradition.
SEC Case Dismissed as HEX and PulseChain Prices Slide
Heart previously faced civil enforcement action from the US Securities and Exchange Commission. In July 2023, the SEC accused Heart and entities associated with HEX, PulseChain and PulseX of conducting unregistered cryptocurrency offerings that raised more than $1 billion. The regulator also alleged that at least $12 million in investor funds had been diverted toward luxury purchases, including expensive watches, sports cars and a rare black diamond. A US federal court dismissed the SEC’s lawsuit in February 2025 after finding insufficient jurisdictional connections to the United States. The SEC subsequently declined to amend its complaint in April 2025, ending that proceeding.
The dismissal did not resolve the separate Finnish criminal investigation underlying the Interpol notice. Cryptocurrencies associated with Heart experienced substantial selling pressure following reports of his detention. Market data cited by The Block showed HEX declining approximately 25% and PulseChain’s PLS token falling around 35% during the initial reaction. Other market trackers subsequently reported larger declines, reflecting rapidly changing prices and differences between trading venues. The selloff underscores the reputational and market risks associated with cryptocurrency ecosystems closely identified with individual founders.
Although HEX and PulseChain operate through blockchain infrastructure that does not necessarily require Heart’s direct involvement, uncertainty surrounding his legal position could affect investor confidence. The immediate focus now turns to confirmation of his custody status, possible extradition proceedings and any further disclosures from Turkish or Finnish authorities. Until official documentation emerges, the reported detention and seizure details remain subject to verification.