ISTANBUL, October 16, 2026 — Turkish police and intelligence agencies arrested Richard Heart, founder of the HEX and Pulse tokens, in a dawn raid on October 14, alleging he operated an international crypto fraud network from Istanbul.
Arrest Details and Raid Execution
Richard Heart, whose legal name is Richard James Schueler, was detained along with his wife, A.K., in an operation conducted by Turkey’s National Intelligence Organization (MIT) and Istanbul police teams. The raid took place at his residence in the Beşiktaş district, which had been under surveillance prior to the arrest. Authorities seized a dozen mobile phones, several laptops, graphic cards, rifles, pistols, two drones, gold bracelets, and a large amount of cash in different currencies. Reports of the cash total vary, with some sources citing $600,000 and others up to $4 million.
Alleged Fraud Network and Victim Countries
Turkish authorities allege Heart built an Istanbul-based international fraud network with victims in the United States, Finland, and Spain. Police traced him through suspicious digital wallet activity involving millions of dollars in tokens linked to an Istanbul IP address. The operation followed months of technical and physical surveillance by the Istanbul Police Department Intelligence Branch and Anti-Financial Crimes Branch, supported by MIT.
Evidence Seized by Authorities
Among the items seized were firearms, drones, gold jewelry, luxury watches, and electronic devices used in the alleged scheme. The cash seized was reported in multiple currencies, though exact figures differ across media reports. Authorities also took possession of graphic cards and other hardware that may have been used for mining or transaction processing. No further details on the specific use of seized equipment were provided in the source material.
Prior Legal Issues and Interpol Notice
Heart was already the subject of an Interpol Red Notice issued in 2024 at the request of Finland for aggravated tax fraud, though Finnish authorities have also sought him over an alleged assault. In 2023, the U.S. Securities and Exchange Commission charged Heart and three entities he controlled — Hex, PulseChain and PulseX — with conducting unregistered offerings of crypto asset securities that raised more than $1 billion. The SEC also accused him of misappropriating at least $12 million of investor funds to buy luxury goods, including sports cars, watches and a 555-carat black diamond known as “The Enigma.” A federal judge dismissed the SEC’s complaint in February 2025 for lack of jurisdiction, finding that Heart’s activities were not clearly aimed at U.S. investors. The SEC declined to amend the case by an April 2025 deadline, ending the proceedings.
Implications for Crypto Regulation
The arrest highlights ongoing challenges in regulating cross-border crypto activities, particularly when operators exploit jurisdictional gaps. While the U.S. case was dismissed on jurisdictional grounds, Turkish authorities acted on an Interpol Red Notice, demonstrating how international cooperation can lead to detention even when domestic prosecutions fail. The case underscores the importance of monitoring digital wallet activity and IP addresses in tracking suspected fraud. It also raises questions about how luxury assets purchased with alleged investor funds are traced and seized across borders. No statements from Turkish prosecutors or Heart’s legal team were included in the source material regarding next steps or potential extradition requests.
Background and Launch of HEX and Pulse Tokens
Richard Heart launched the HEX token in 2018, marketing it as a high-yield “blockchain certificate of deposit” designed to offer interest-like returns to holders who staked their tokens for set periods. The project gained attention in the cryptocurrency community for its unique economic model, which promised significant returns based on the length and amount of staked HEX. Heart later expanded the ecosystem with the creation of PulseChain and PulseX, positioning them as upgrades to Ethereum with faster transaction speeds and lower fees.
PulseChain was introduced as a hard fork of Ethereum, aiming to replicate the entire state of the Ethereum blockchain while implementing modifications to improve efficiency. PulseX, launched alongside PulseChain, functions as a decentralized exchange within the Pulse ecosystem, enabling users to trade tokens and provide liquidity. Heart promoted these projects as solutions to Ethereum’s scalability and cost issues, attracting investors seeking alternative blockchain platforms.
The growth of HEX, PulseChain, and PulseX contributed to Heart’s prominence in the crypto space, with the projects collectively raising substantial funds from global investors. However, regulatory scrutiny followed, particularly regarding whether the tokens constituted unregistered securities and how investor funds were utilized, leading to investigations by authorities in multiple jurisdictions including the United States, Finland, and Turkey.
Sources
- Richard ‘HEX’ Heart arrested in Turkey running another crypto scam
- Türkiye nabs Interpol-wanted crypto fugitive in Istanbul operation
- Hex Founder Richard Heart Detained in Istanbul on Interpol Red Notice: Report
Photo: User:Ggia (CC BY-SA 3.0)
