Richard Heart, the cryptocurrency entrepreneur behind HEX, PulseChain and PulseX, was reportedly detained in Istanbul Wednesday under an Interpol Red Notice.
What Turkish Authorities Say Happened
Daily Sabah reported Wednesday that Turkish intelligence and police teams detained Heart, also known as Richard James Schueler, along with his wife at an address in Istanbul’s Beşiktaş district.
Authorities seized a large amount of cash in different currencies, jewelry, firearms, drones and digital devices during the operation, according to the report.
Interpol issued the Red Notice in 2024 at Finland’s request over allegations of high-value cryptocurrency fraud.
Turkish police had monitored Heart’s address through technical and physical surveillance before making the arrest.
The detention comes roughly 18 months after a federal judge threw out the SEC’s $1 billion fraud case against Heart.
How This Differs From the SEC’s Original Case
The SEC first sued Heart in July 2023, alleging he raised more than $1 billion through unregistered crypto offerings tied to HEX, PulseChain and PulseX.
The agency also accused him of misusing at least $12 million in investor funds on luxury purchases, including sports cars, Rolex watches and a 555-carat black diamond called “The Enigma.”
That case ended in Heart’s favor:
- February 2025: US District Judge Carol Bagley Amon dismissed the SEC’s lawsuit.
- Why it was dismissed: the agency failed to show sufficient ties between Heart’s conduct and the United States.
- The judge’s reasoning: Heart’s online statements targeted a global audience rather than U.S. investors specifically, and the alleged misappropriation occurred entirely through digital wallets and platforms with no U.S. connection.
A spokesperson for Heart said at the time that the ruling brought “welcome relief and opportunity to all cryptocurrencies.”
Why This Arrest Is a Separate Matter
Wednesday’s detention stems from Finland’s Interpol request over alleged crypto fraud, not the dismissed SEC case.
The two matters involve different jurisdictions and different legal theories, though both center on allegations tied to Heart’s crypto ventures.
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