Richard Schueler, the HEX and PulseChain founder known as Richard Heart, was detained in Istanbul on Oct. 14 during an operation in the Beşiktaş district. Police also impounded nine luxury vehicles registered to Schueler’s wife, along with watches, bags and graphics cards.
Schueler has been the subject of an Interpol Red Notice issued on Finland’s behalf over allegations of tax fraud and assault. Turkish reports also linked him to a U.S. Securities case involving an alleged $1 billion unregistered offering, but a judge dismissed that case in February 2025. HEX’s market capitalization fell from about $561 million to $315 million during the week of the detention.
The detention came as broader crypto markets showed sharply different signals. Spot Bitcoin exchange-traded funds attracted roughly $6 billion during the quarter, returning year-to-date net flows to positive territory.
Bitwise chief investment officer Matt Hougan described the combination of stronger prices, increased onchain activity and renewed fund inflows as evidence that a period of recovery may be beginning. The market data supports a rebound thesis, while the events surrounding HEX illustrate that individual projects can face severe pressure even during a stronger quarter for major digital assets.