Richard Heart Detained in Turkey Over Tax Evasion Allegations

Background

Turkish authorities have detained Richard Heart, founder of HEX and PulseChain, over tax evasion allegations related to a Finnish investigation. The arrest marks growing regulatory pressure on the cryptocurrency industry.

Context

HEX launched in 2019 as an Ethereum token that rewards holders for locking their tokens for specified periods. PulseChain launched in 2023 as a separate blockchain based on Ethereum's software. PulseX operates as a decentralized exchange on PulseChain where users can swap tokens and provide liquidity.

Arrest

Heart's legal name is Richard James Schueler. Authorities detained him in Istanbul, along with his wife, in the Bebek district. The operation was carried out by police and the National Intelligence Organization. The reports did not specify the total value of the seized assets, but they included mobile phones, laptops, graphics cards, firearms, two drones, gold bracelets, and cash in several currencies.

Investigation

Finnish authorities sought Heart over suspected aggravated tax evasion and assault. Those allegations became public in 2024. A separate assault allegation dates to February 2021. The Finnish investigation is separate from a US Securities and Exchange Commission lawsuit that was dismissed earlier this year.

Background on HEX and PulseChain

HEX launched in 2019 as an Ethereum token that rewards holders for locking their tokens for specified periods. PulseChain launched in 2023 as a separate blockchain based on Ethereum's software. It copied Ethereum's blockchain state, including token balances, at launch. Its native token, PLS, pays transaction fees.

Previous Developments

In July 2023, the SEC sued Heart, Hex, PulseChain, and PulseX. It alleged their unregistered crypto offerings raised more than $1 billion. The agency also accused Heart and PulseChain of misappropriating at least $12 million in investor funds for luxury goods. However, a US federal judge dismissed the lawsuit in February 2025, finding that the SEC had not established personal jurisdiction over Heart.

Conclusion

The detention of Richard Heart marks growing regulatory pressure on the cryptocurrency industry. The Finnish investigation and US Securities and Exchange Commission lawsuit highlight the need for greater compliance and transparency in the industry.