HEX plunged nearly 60%, while PulseX fell 49% and PulseChain’s PLS token shed almost 36% after reports said Richard Heart had been detained in Istanbul under an Interpol Red Notice requested by Finland. The sharp losses highlight the vulnerability of crypto projects whose market confidence is closely tied to a high-profile founder.
Turkish police and the country’s National Intelligence Organization (MİT) reportedly detained Heart, whose legal name is Richard James Schueler, in Istanbul’s Beşiktaş district. The reported operation was linked to a Red Notice requested by Finland in December 2024 over suspected aggravated tax fraud. The detention report, however, does not establish guilt or confirm a conviction or extradition.
Finnish authorities are reportedly investigating suspected aggravated tax fraud involving income earned between June 2020 and April 2024. The potential unpaid tax has been estimated at hundreds of millions of euros. Separate reporting about Heart’s wanted status has also mentioned an assault allegation involving a 16-year-old.
Reports on the Istanbul operation said authorities recovered approximately $4 million in cash, electronic equipment, firearms, drones, 64 watches, and six cold wallets.
HEX, PLS, and PulseX Face Pressure as Founder Risk Intensifies
Richard Heart founded HEX, PulseChain, and PulseX, and his public profile has been instrumental in promoting the ecosystem. This close connection between founder and project can leave token prices especially sensitive to legal developments, as uncertainty about leadership may affect investor confidence even if the underlying technology continues operating normally.
For traders, liquidity is another important factor. When tokens have relatively thin markets, sudden selling can widen spreads and magnify price movements. Liquidations and forced position closures can add to the downward pressure, producing losses that extend beyond the initial market reaction.
However, a sharp decline in token prices does not necessarily mean the blockchain has suffered a technical failure or that the projects’ long-term fundamentals have changed.
The reported seizure of Heart’s personal assets also does not automatically interrupt PulseChain’s operations or invalidate HEX, PLS, or PLSX smart contracts.
Instead, attention is turning to the projects’ ability to operate without their founder’s direct involvement. Investors may look for evidence that independent contributors can maintain development, provide reliable updates, and manage the ecosystem. They may also seek clarification about whether any wallets mentioned in reports are connected to project-controlled assets.
Richard Heart’s Legal Situation Adds to Market Uncertainty
Heart’s U.S. legal proceedings are separate from Finland’s investigation.
In 2023, the U.S. Securities and Exchange Commission filed a civil complaint alleging that Heart and associated projects conducted unregistered securities offerings worth more than $1 billion and that at least $12 million was misused. A federal judge dismissed the case in February 2025 on jurisdictional grounds, and the agency did not pursue an amended complaint.
The U.S. case and the Finnish investigation concern separate legal matters. Allegations should not be treated as proven facts, and the reported detention does not establish criminal liability.
For HEX, PLS, and PLSX holders, the immediate market question is whether further confirmed legal developments will affect the projects’ leadership, communication, or operational continuity. Uncertainty around these issues could continue to influence trading activity.
An official Turkish court filing or confirmation of an extradition proceeding would help clarify the legal process. Until more verified information becomes available, further price swings remain possible, but the ultimate legal outcome and the tokens’ future performance are still uncertain.
