Crypto Founder Richard Heart Arrested in Istanbul on $1 Billion Fraud Allegations

A High-Profile Takedown in Istanbul

Turkey's Justice Ministry confirmed on October 17 that Richard James Schueler — the U.S. crypto entrepreneur known publicly as "Richard Heart" — was detained in Istanbul on October 14 along with his wife. The arrest, coordinated across multiple Turkish law enforcement agencies, caps a years-long international effort to bring one of the crypto world's most polarizing figures to account. For the millions of ordinary investors who poured money into his projects, the news carries enormous weight.

Schueler, the American entrepreneur behind HEX, PulseChain, and PulseX, was detained alongside his wife, and three additional men described as his bodyguards were subsequently apprehended. The operation was coordinated by the Istanbul Chief Public Prosecutor's Office, with the participation of police intelligence and financial crimes units and support from Turkey's National Intelligence Organization (MİT).

What Authorities Found

As part of the investigation, police searched 15 locations across the Beşiktaş, Üsküdar, and Sarıyer districts, seizing $7.15 million in cash, 160,000 Turkish liras, and six hardware cryptocurrency wallets — along with 29 smartphones, 23 computers and laptops, 19 solid-state drives, 46 USB storage devices, and 19 graphics cards.

Officers additionally discovered approximately 300 designer handbags, 100 pairs of shoes, 136 pairs of glasses, 28 wristwatches, and 97 pieces of jewelry. Four rifles, three unregistered pistols, and 1,400 rounds of ammunition were also seized during the searches. Nine vehicles registered to Heart's wife were also impounded. The sheer volume and variety of the haul paints a picture of someone who had been living lavishly — and hiding extensively.

A Legal History That Spans Continents

Justice Minister Akın Gürlek linked the Interpol Red Notice to allegations of a $1 billion crypto-asset fraud with ties to the United States and Finland. This isn't Schueler's first brush with regulators. The detention follows a lawsuit filed by the U.S. Securities and Exchange Commission against Heart and three entities connected to him in July 2023, alleging they raised more than $1 billion through unregistered cryptocurrency securities offerings and that Heart used at least $12 million for personal luxury purchases.

The SEC sued him in 2023 over alleged unregistered cryptocurrency offerings exceeding $1 billion, but a federal judge dismissed that case in February 2025 on jurisdictional grounds, and the SEC declined to amend its complaint. That dismissal may have given Schueler a false sense of security — but the Interpol Red Notice, apparently tied to a separate investigation spanning Finland and the U.S., kept the legal pressure alive.

Turkey Sends a Clear Message

In announcing the arrest, Justice Minister Gürlek stated that Turkish security and intelligence agencies were continuing their efforts in close coordination to prevent the country from becoming a refuge for wanted individuals and to ensure that internationally sought suspects are apprehended and brought to justice. The message was direct: Turkey will not serve as a sanctuary for those fleeing international law enforcement.

Five individuals remain subject to judicial proceedings, with no publicly confirmed extradition filing or court disposition. The contents of the six seized cryptocurrency cold wallets — potentially holding significant digital assets — remain under examination. For crypto investors who lost money in HEX, PulseChain, or PulseX, the coming weeks of legal proceedings may finally offer answers. Whether they bring justice, however, will depend on what unfolds in the courts ahead.