The Hex token market lost around $160 million in market capitalization in just 24 hours. The price of HEX tumbled nearly 30% after reports emerged of the arrest of its founder, Richard Schueler, also known as Richard Heart, in Istanbul, Turkey.
Turkish news agency Ihlas Haber Ajansi (IHA) reported that police detained Schueler alongside his wife during an operation in Istanbul. A wave of sell-offs from token holders quickly spread following the news. The drop in HEX’s price was not triggered by technical flaws in network code, but rather by criminal proceedings targeting its key real-world figure.
Hardware Wallets, Jewelry, and Firearms
Turkish police secured several pieces of evidence during Schueler’s arrest. According to IHA, officers seized electronic devices, hardware wallets, luxury jewelry, and a handgun from the scene.
Finnish authorities had previously seized valuable assets belonging to Schueler during their European investigation. In that probe, Finnish police confiscated Richard Heart’s luxury watch collection valued at $2.6 million.
Interpol Red Notice Over Assault Charges
Turkish authorities acted on a long-standing international wanted notice. The arrest comes nearly two years after Interpol issued a Red Notice for Schueler at the request of Finnish authorities over allegations of tax fraud and physical assault.
Europe’s most wanted fugitive list placed Schueler over allegations of physical violence against a 16-year-old victim. Charging documents state that Schueler pulled the victim’s hair, dragged them into a stairwell, and slammed them to the floor.
Authorities in Helsinki refrained from making public statements. A spokesperson for Finland’s National Bureau of Investigation declined to offer official comment on developments surrounding Schueler’s detention in Istanbul.
$1 Billion SEC Lawsuit Dismissed by Judge
Prior to his arrest in Istanbul, Schueler had faced regulatory action in the United States. In July 2023, the US Securities and Exchange Commission (SEC) sued Schueler over alleged unregistered securities offerings totaling $1 billion and the alleged misappropriation of $12 million in funds.
The civil lawsuit was ultimately dismissed in court. US District Judge Carol Bagley Amon tossed the SEC lawsuit in February 2025 on grounds that it did not target US investors. The SEC later confirmed its stance in April 2025, stating it would not refile the lawsuit.
Escaping the multi-billion-dollar lawsuit in New York proved not to shield Schueler from European legal entanglements. For HEX token holders watching nearly a third of their portfolio value evaporate in a single day, the arrest serves as a reminder that crypto projects revolving around a single central figure will always carry the legal risks of the person behind them.
Reported via Cointelegraph.
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Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
