HEX Crashes 60% as PulseX and PLS Extend Losses Amid Richard Heart Fallout

HEX plunged nearly 60%, while PulseX declined 49% and PulseChain’s PLS token dropped almost 36% after reports emerged that Richard Heart had been detained in Istanbul under an Interpol Red Notice requested by Finland. The sell-off highlights how heavily markets can react to legal uncertainty surrounding founders of personality-driven crypto projects.

Turkish police and the National Intelligence Organization (MİT) reportedly detained Heart, whose legal name is Richard James Schueler, in Istanbul’s Beşiktaş district. Reports connected the operation to a Red Notice requested by Finland in December 2024 over suspected aggravated tax fraud. However, the reported detention does not constitute a conviction, establish guilt, or confirm an extradition decision.

Finland’s investigation reportedly concerns suspected aggravated tax fraud involving income earned between June 2020 and April 2024. Finnish authorities have reportedly estimated potential unpaid taxes at hundreds of millions of euros. Separate reports have also referenced an assault allegation involving a 16-year-old in connection with Heart’s wanted status.

Items reportedly recovered during the Istanbul operation included approximately $4 million in cash, electronic devices, firearms, drones, 64 watches, and six cold wallets.

Founder Risk Puts HEX, PulseChain, and PulseX Under Pressure

Richard Heart founded HEX, PulseChain, and PulseX, with his public image playing a significant role in promoting the projects. This close association creates a potential vulnerability: legal trouble involving a prominent founder can undermine investor confidence in leadership, communication, and future development, even when the underlying blockchain and smart contracts continue functioning.

For traders, the distinction is important. Tokens trading in markets with limited liquidity can experience exaggerated price movements as spreads widen and buyers become scarce. Liquidations and forced selling can further accelerate declines, intensifying volatility beyond the initial news event.

Crypto market history shows that sudden catalysts can trigger sharp reversals when traders are heavily positioned in one direction. However, these price movements do not necessarily provide new information about a project’s technical performance or long-term fundamentals.

The reported seizure of Heart’s personal assets also does not automatically mean that PulseChain has stopped operating or that HEX, PLS, or PLSX contracts have become invalid.

Instead, investors face several operational questions: Can Heart continue communicating with the community? Do the projects have independent teams capable of maintaining development and operations? And are any of the wallets reportedly involved connected to funds controlled by the projects themselves?

Answers to these questions could help investors distinguish between uncertainty surrounding the founder and risks affecting the protocols directly.

How Heart’s Legal Cases Could Affect Token Prices

The legal proceedings involving Heart in the United States are separate from Finland’s tax investigation.

In 2023, the U.S. Securities and Exchange Commission filed a civil complaint alleging that Heart and the associated projects conducted unregistered securities offerings involving more than $1 billion and that at least $12 million was misused. A federal judge dismissed the case in February 2025 on jurisdictional grounds, after which the agency did not pursue an amended complaint.

The separate investigations should not be treated as evidence of guilt, and developments in one jurisdiction do not automatically determine the outcome of proceedings in another.

For HEX, PLS, and PLSX traders, the immediate concern is whether further confirmed legal developments will disrupt project leadership, communication, or investor confidence. The ability of the projects to continue operating independently of Heart could also influence market sentiment.

An official Turkish court filing or a confirmed extradition proceeding would provide greater clarity about the legal situation. Until more information is verified, additional price volatility remains possible, but neither the legal outcome nor the tokens’ future direction is established.

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