Turkish authorities have detained Richard James Schueler, the cryptocurrency entrepreneur known as Richard Heart, in Istanbul and seized $7.15 million in cash, six cold wallets and an array of luxury goods and weapons during searches linked to the case.
Justice Minister Akın Gürlek confirmed on October 17 that Heart had been taken into custody on October 14. The operation also led to the detention of Heart’s wife and, in a subsequent action, three men identified by police as his bodyguards.
Heart founded HEX, PulseChain and PulseX, projects that have attracted controversy amid legal scrutiny in the United States and Finland. Turkish authorities linked his detention to an Interpol Red Notice issued at Finland’s request in December 2024 over suspected tax offenses and other allegations.
The latest development adds a new chapter to the international legal proceedings surrounding Heart, although Turkish officials have not announced whether an extradition request has been received or where he could face further proceedings.
Turkey Seizes Cash, Cold Wallets and Luxury Assets
The operation was coordinated by the Istanbul Chief Public Prosecutor’s Office, working with the city’s intelligence and financial crimes units and Turkey’s National Intelligence Organization, known as MİT.
According to Gürlek, searches at 15 addresses across Istanbul’s Beşiktaş, Üsküdar and Sarıyer districts uncovered $7.15 million in US currency, 160,000 Turkish lira and six cold wallets used to store digital assets offline.
Authorities also seized 28 watches, 97 pieces of jewelry, 300 bags, 100 pairs of shoes, 136 pairs of glasses, 29 phones, 12 laptops, 11 computer towers, 19 solid-state drives and external disks, 46 USB drives and 19 graphics cards.
The searches also yielded four long-barreled rifles, three unlicensed pistols and 1,400 rounds of ammunition. Turkey’s state news agency Anadolu separately reported that nine vehicles registered to Heart’s wife had been impounded.
Officials said judicial proceedings and the examination of the seized materials were continuing. They have not disclosed what the six cold wallets contain or whether any cryptocurrency recovered from them is connected to the allegations against Heart.
Interpol Red Notice Links Heart to Finnish Investigation
Gürlek said Heart was wanted under an Interpol Red Notice associated with allegations of approximately $1 billion in cryptocurrency fraud involving the United States and Finland.
The notice was issued in December 2024 at Finland’s request. Finnish authorities were seeking Heart on suspicion of aggravated tax evasion and assault, according to previous reporting.
A Red Notice is a request to law enforcement agencies worldwide to locate and provisionally arrest a person pending extradition or similar legal proceedings. It is not, by itself, an international arrest warrant or a determination of guilt.
Turkish officials have not said whether they have received a formal extradition request or whether Heart will face proceedings in Turkey before any possible transfer to another jurisdiction.
The allegations remain subject to the relevant legal processes, and the Turkish announcement did not establish that Heart had been convicted of the offenses cited in connection with the notice.
SEC Case Against Heart Was Dismissed
Heart has also faced scrutiny from the US Securities and Exchange Commission over his cryptocurrency projects.
In July 2023, the SEC sued Heart and entities associated with his projects, alleging that they raised more than $1 billion through unregistered crypto asset securities offerings. The regulator also alleged that Heart diverted at least $12 million for personal luxury purchases.
However, a federal judge dismissed the SEC’s lawsuit in February 2025 on jurisdictional grounds. The agency subsequently declined to refile the case in April of that year.
The US proceedings therefore ended without a judgment establishing the SEC’s allegations against Heart. The Turkish detention is linked to a separate international legal matter, and the available announcement does not indicate that the dismissed SEC case formed the basis for the arrest.
HEX Falls as Founder’s Detention Raises Questions
Heart launched HEX in 2019, followed by the PulseChain blockchain and PulseX decentralized exchange. His detention puts renewed attention on the projects and the role of their founder in their broader ecosystem.
HEX fell approximately 14% over the 24 hours covered by CoinGecko data cited in The Block’s report. The decline came as news of Heart’s detention circulated, although the price movement alone does not establish that the arrest was its sole cause.
PulseChain operates as a blockchain network, while PulseX functions as a decentralized exchange. Their continued operation does not necessarily depend on Heart personally remaining at the helm, but his absence could affect investor sentiment and perceptions of the projects’ future direction.
The seized wallets have also become a point of interest, though authorities have not disclosed their contents or established a connection between the assets and the alleged misconduct.
Extradition and Legal Proceedings Remain Unclear
The next stage of the case will depend on decisions by Turkish authorities and any formal requests from foreign jurisdictions. As of the latest announcement, officials had not confirmed whether Heart would be extradited to Finland, the United States or face additional proceedings in Turkey.
For now, the confirmed developments are the detention, the seizures and the continuation of judicial procedures. The legal outcome remains unresolved, while the future implications for HEX and PulseChain will depend on how the proceedings unfold and whether the investigation produces further information about the seized digital assets.