Richard Heart detained in Istanbul as Turkey seizes $7.15M

Richard James Schueler, the founder of HEX, PulseChain and PulseX who is known as Richard Heart, was detained in Istanbul on Oct. 14, Turkish Justice Minister Akın Gürlek confirmed on Oct. 17. Turkish authorities seized $7.15 million in U.S. currency, 160,000 Turkish lira, six cold wallets and other property during searches linked to the case.

Heart, a U.S. citizen, was detained with his wife in an operation coordinated by the Istanbul Chief Public Prosecutor’s Office. Istanbul police units and Turkey’s National Intelligence Organization supported the operation. Gürlek described Heart as the subject of an Interpol red notice related to allegations of a $1 billion cryptocurrency fraud in the United States and Finland.

Authorities searched 15 addresses in Istanbul’s Beşiktaş, Üsküdar and Sarıyer districts. They seized 300 bags, 100 pairs of shoes, 136 pairs of glasses, 28 watches, 97 pieces of jewelry, 29 phones, 12 laptops, 11 computer towers, 19 solid-state drives and external disks, 46 USB drives and 19 graphics cards.

The searches also produced four long-barreled rifles, three unlicensed pistols and 1,400 rounds of ammunition. Three men identified as Heart’s bodyguards were detained later. Nine vehicles registered to Heart’s wife were impounded. Authorities are examining the seized materials, and judicial proceedings are continuing.

The detention follows a lawsuit filed by the U.S. Securities and Exchange Commission against Heart and three entities connected to him in July 2023. The SEC alleges that they raised more than $1 billion through unregistered cryptocurrency securities offerings. It also alleges that Heart used at least $12 million for personal luxury purchases. The case remains unresolved, and the allegations have not been proven in court.

Finland requested an Interpol red notice in December 2024 over suspected aggravated tax fraud linked to Heart’s cryptocurrency activities. Turkish authorities have not announced whether Heart will be extradited to Finland, sent to the United States or face proceedings in Turkey first.

Heart launched HEX in 2019 as a certificate-of-deposit-style cryptocurrency. He later created the PulseChain blockchain and PulseX decentralized exchange. PulseChain and PulseX remain operational and are maintained by community participants. Authorities have not disclosed what the six seized cold wallets contain or whether their assets are connected to the allegations.