Türkiye confirms arrest of HEX founder Richard Hart in $1 billion case

Turkish law enforcement agencies have officially confirmed the detention of Richard Schüler, better known in the crypto community as Richard Hart. The founder of the HEX, PulseChain and PulseX ecosystem was arrested in Istanbul at the request of international authorities as part of a criminal case of fraud and misappropriation of user funds amounting to over $1 billion. The news caused an instant collapse of affiliated tokens and active discussions about the extradition procedure.

Why was the founder of HEX and PulseChain detained?

The entrepreneur’s legal problems began in 2023, when the US Securities and Exchange Commission (SEC) charged him with selling unregistered securities and misappropriating investor funds for personal luxury purchases. However, an international investigation in 2024-2025 revealed a much larger scheme related to the distribution of liquidity at the launch of PulseChain.

Turkish authorities acted on the basis of an Interpol red notice. According to a statement by the Istanbul Prosecutor General’s Office,Richard Hartwhose arrest had been prepared for several months, is suspected of creating a financial pyramid and laundering proceeds from crime. Security forces also seized luxury real estate and bank accounts belonging to the businessman in the country.

How did the market react to the arrest?

The announcement of the arrest provoked panic among ecosystem asset holders. During the first hours after official confirmation, the rates of key tokens showed a rapid decline:

• HEX: fell by 42% to a new historical low;
• PLS (PulseChain):lost about 38% of value;
• PLSX (PulseX): fell by 45% amid a massive outflow of liquidity from decentralized pools.

The largest validators of the PulseChain network have already announced the preparation of an emergency protocol update to limit access to smart contracts and wallets associated with Hart and prevent a complete collapse of the ecosystem.

What’s next for Richard Hart?

Currently, the defendant is in a pre-trial detention center in Istanbul. The US Department of Justice has already sent a formal extradition request. Given the existing agreements between the United States and Turkey in cases of major economic crimes, the extradition procedure may take from several weeks to a couple of months.

American lawyers note that if Hart is extradited to the United States, he faces up to 40 years in prison on a combination of charges of wire fraud and money laundering.