HEX lost nearly 60% of its value, while PulseX plunged 49% and PulseChain’s PLS token declined close to 36% after reports emerged that Richard Heart had been detained in Istanbul under an Interpol Red Notice requested by Finland. The market reaction underscores the risks facing crypto ecosystems that rely heavily on a founder’s public image and leadership.

Turkish police and the National Intelligence Organization (MİT) reportedly detained Heart, whose legal name is Richard James Schueler, in Istanbul’s Beşiktaş district. Reports linked the operation to a Red Notice requested by Finland in December 2024 in connection with suspected aggravated tax fraud. The reported detention does not amount to a conviction, establish guilt, or confirm that extradition has been approved.

Finland’s investigation reportedly concerns suspected tax fraud involving income earned from June 2020 through April 2024. The potential unpaid taxes have reportedly been estimated at hundreds of millions of euros. Separate reports concerning Heart’s wanted status have also referred to an assault allegation involving a 16-year-old.

Authorities reportedly recovered around $4 million in cash, electronic devices, firearms, drones, 64 watches, and six cold wallets during the Istanbul operation.

Richard Heart Detention Reports Send HEX and PulseChain Tokens Lower

Heart founded HEX, PulseChain, and PulseX, and his public persona has been central to the promotion of these projects. This close association can make the ecosystem particularly vulnerable to developments affecting its founder, as legal uncertainty may undermine confidence in leadership, communication, and future execution.

The price declines do not necessarily indicate a technical problem with the underlying networks. Instead, traders may be reassessing the risks associated with Heart’s possible absence and the projects’ ability to continue operating independently.

Market liquidity can amplify the reaction. When trading activity is limited, heavy selling may widen bid-ask spreads and push prices lower more rapidly. Forced liquidations can add further pressure, increasing volatility beyond the initial response to the news.

Still, falling token prices alone do not establish that the projects’ fundamentals have deteriorated or that their underlying technology has failed.

The reported seizure of Heart’s personal assets also does not automatically stop PulseChain’s blockchain or invalidate HEX, PLS, or PLSX smart contracts.

Investors are instead likely to focus on operational questions, including whether independent teams can maintain development, whether project communications will continue uninterrupted, and whether any wallets mentioned in reports are linked to assets controlled by the projects.

Separate Legal Cases Keep Investors Focused on Richard Heart

Heart’s legal situation in the United States is distinct from Finland’s tax investigation.

In 2023, the U.S. Securities and Exchange Commission filed a civil complaint alleging that Heart and related projects carried out unregistered securities offerings exceeding $1 billion and that at least $12 million was misused. A federal judge dismissed the case in February 2025 on jurisdictional grounds, and the SEC did not file an amended complaint.

These proceedings should be considered separately, and allegations must not be treated as established guilt. Likewise, the reported detention in Turkey does not determine the outcome of the Finnish investigation.

For holders of HEX, PLS, and PLSX, market sentiment may depend on whether further verified legal developments affect Heart’s ability to lead or communicate with the community. Evidence that the projects can operate without his direct involvement could also influence how traders assess the longer-term risks.

An official Turkish court filing or confirmation of extradition proceedings would provide greater clarity on the legal process. Until then, volatility could persist, but the eventual legal outcome and future price movements remain uncertain.