Richard Heart, officially known as Richard James Schueler and founder of PulseChain, HEX, and PulseX, was arrested in Istanbul, Turkey on allegations of aggravated tax fraud. The arrest was conducted by Istanbul Police, Anti-Financial Crimes branches, and Turkey's National Intelligence Organization based on an Interpol Red Notice issued at Finland's request.
According to authorities, Heart is accused of evading hundreds of millions in taxes between 2020 and 2024, as well as assault charges. During a raid in Istanbul's Beşiktaş district, law enforcement seized substantial assets including $4 million in cash in various currencies, encrypted cold storage wallets, and crypto mining equipment.
Prior Legal Challenges
In 2023, the US Securities and Exchange Commission sued Heart for allegedly misappropriating $12 million worth of investor funds to purchase luxury items. A federal judge dismissed the case due to lack of global activity jurisdiction, and the SEC declined to appeal.
Market Impact
Following the arrest, the ecosystem's native tokens experienced sharp declines. PulseChain (PLS) dropped approximately 45% to 50% to trade at $0.059. HEX fell 30% to $0.00066, while PulseX (PLSX) declined 31% to $0.055. Analysts attributed the price shifts partly to panic selling that strained available liquidity.
Heart remains in Turkish custody as Finland proceeds with extradition proceedings.
