Turkish police and intelligence officers detained Richard Heart, the founder of Hex cryptocurrency, in Istanbul on Wednesday. The operation, conducted by Istanbul police and Turkey's National Intelligence Organization (MIT), was executed based on an Interpol Red Notice issued at the request of Finland in 2024. Heart, whose legal name is Richard James Schueler, was detained alongside his wife after authorities monitored their address in the Beşiktaş district. During the raid, officers seized a dozen mobile phones, several laptops, graphics cards, rifles, pistols, two drones, gold bracelets, and a large amount of cash in various currencies.
The Interpol Red Notice lists a single charge of aggravated tax fraud against Heart. Finnish authorities have also sought him over an alleged assault, though the notice specifically references the tax charge. A Red Notice serves as a request for law enforcement worldwide to locate and provisionally arrest a person pending extradition or similar legal action; it does not constitute an international arrest warrant. It remains unclear whether Finnish authorities have formally requested Heart's extradition from Turkey.
Heart launched Hex in 2018, marketing it as a high-yield "blockchain certificate of deposit." In 2023, the U.S. Securities and Exchange Commission (SEC) accused Heart and three entities he controlled—Hex, PulseChain, and PulseX—of conducting unregistered offerings of crypto asset securities that raised more than $1 billion. The SEC also alleged misappropriation of at least $12 million in investor funds for luxury goods, including sports cars, watches, and a 555-carat black diamond known as "The Enigma." However, a federal judge dismissed the SEC complaint in February 2025 due to lack of jurisdiction, finding that Heart's activities were not clearly aimed at U.S. investors. The SEC declined to amend the complaint by an April deadline, effectively ending the case.
The detention of Richard Heart highlights the complex intersection of global crypto regulation and national criminal law enforcement. While the SEC's civil case against Heart concluded with a dismissal for lack of jurisdiction, the active Interpol Red Notice initiated by Finland demonstrates that regulatory setbacks in one jurisdiction do not necessarily shield individuals from criminal proceedings elsewhere. This distinction is critical for understanding the residual risks faced by founders of decentralized finance projects who operate across borders without clear regulatory alignment.
From a Compliance perspective, this event underscores the limitations of relying solely on U.S. judicial outcomes when facing international scrutiny. The seizure of significant assets, including firearms and multiple electronic devices, suggests that Turkish authorities are treating the matter with high priority, potentially indicating broader investigative interests beyond the specific tax fraud charge listed in the notice. Market participants should note that while the SEC case is closed, the unresolved status of the Finnish extradition request introduces continued uncertainty regarding Heart's personal liberty and potential future legal liabilities in Europe.
