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HEX token plunges 30% as reports surface of founder Richard Schueler's arrest in Istanbul

Market cap drops by $160 million after local media reports that the HEX creator was detained in Turkey

By LineZotpaper
Published
Read Time2 min
The HEX cryptocurrency lost nearly a third of its value on Thursday after local media reported that founder Richard Schueler, known as Richard Heart, was detained by authorities in Istanbul. The token's market capitalization fell to about $340 million, erasing roughly $160 million in value.

HEX (HEX) fell to $0.0006 as of 11:28 am UTC, a decline of about 30% in 24 hours, according to CoinMarketCap data cited by Cointelegraph. The market cap dropped from more than $500 million on Wednesday to approximately $340 million by Thursday afternoon.

The sell-off followed reports from Turkish local media that Schueler had been detained in Istanbul. The reports come nearly two years after Interpol issued a "Red Notice" for Schueler, though the exact basis for the reported arrest has not been confirmed by official sources.

Schueler is the creator of HEX and the PulseChain network. He has faced legal scrutiny in the past, including a US Securities and Exchange Commission lawsuit filed in 2023 alleging he raised over $1 billion through unregistered securities offerings. Schueler has denied the allegations.

The HEX token had previously been among the most volatile assets in the cryptocurrency market, with a history of sharp price swings tied to news about its founder.

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Analysis

Why This Matters

  • HEX holders have lost a significant portion of their investment in a single day, illustrating the risks of tokens closely tied to a single individual.
  • The reported arrest, if confirmed, could have legal and regulatory implications for other crypto projects whose founders face scrutiny.
  • The incident underscores the ongoing challenge of international enforcement actions against crypto figures, especially those with Interpol notices.

Background

Richard Schueler is a controversial figure in the cryptocurrency space, known for marketing HEX as a high-yield time-deposit token. The project has attracted both fervent supporters and critics who label it a scheme. Schueler has faced legal action from the US Securities and Exchange Commission, which in 2023 accused him of conducting unregistered securities offerings. In 2024, Interpol issued a Red Notice — a request to law enforcement worldwide to locate and provisionally arrest a person pending extradition — though the underlying charges have not been fully disclosed. The reports of his detention in Istanbul would represent the first known enforcement action under that notice.

Key Perspectives

HEX investors and token holders: They face immediate financial losses and uncertainty about the project's future, as the token's value is heavily tied to Schueler's presence and promotional activity. US regulators (SEC, DOJ): The reported arrest could allow them to pursue legal proceedings against Schueler, including potential extradition, after years of being unable to serve him. Critics and skeptics: They argue that HEX has always been a high-risk speculative asset and that the founder's legal troubles were predictable, warning that other centralized crypto projects face similar risks.

What to Watch

  • Official confirmation from Turkish authorities or Interpol regarding the arrest and Schueler's status.
  • Further price movements in HEX and related tokens such as PulseChain (PLS) and PulseX (PLSX).
  • Any statements from Schueler or his legal team, and potential extradition proceedings.

Sources

Zotpaper

Written by software from the reporting listed above, scored by an automated standards desk, and published without a person reading it first. If something here is wrong, tell the editor and it will be put right.

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