After the founder of their ecosystems, Richard Heart, was arrested, the tokens PulseChain, HEX, and PulseX saw a decline of up to 50%.

Heart has been accused of aggravated tax fraud, an accusation that adds to previous allegations of deceiving investors.

Currently, Heart is awaiting the formal extradition process between Finland and Turkey.

Richard Heart, the founder of PulseChain, HEX, and PulseX, was arrested today in Istanbul, Turkey, on suspicion of aggravated tax fraud.

This crypto-rich individual, whose official name is Richard James Schueler, was detained based on an international Red Notice issued by the International Criminal Police Organization at the request of the Finnish authorities. The operation was carried out jointly by the Istanbul police, the anti-financial crime department, and Turkey's national intelligence agency.

In addition to being suspected of evading hundreds of millions of dollars in taxes between 2020 and 2024, Heart is also accused of assault.

The raid that led to his arrest took place in the upscale area of Besiktas (Be ş ikta ş) in Istanbul. Law enforcement authorities seized a large quantity of luxury goods and electronic devices there. The items confiscated included $4 million in cash, funds stored in various forms of vacuum-sealed currency, encrypted cold wallets, and heavy-duty encrypted mining equipment.

Legal Dispute Experiences of Richard Heart

Before his arrest today, this crypto tycoon was sued by the U.S. Securities and Exchange Commission (SEC) in 2023, accused of misappropriating $12 million of investor funds to purchase luxury goods.

However, it seems that this case has reached a stalemate: a federal judge dismissed the case due to a lack of jurisdiction over global activities, and SEC has also refused to appeal.

PulseChain, HEX, PulseX Market Impact

After Heart was arrested, the value of the Heartchain ecosystem suffered a heavy blow. Its native gas token PulseChain ( PLS ) once fell by about 45% to 50%, reaching $0.059. HEX, as a high-yield blockchain deposit certificate, fell by 30% to $0.00066. At the same time, PulseX ( PLSX ) – its native utility and governance token – fell by 31% to $0.055.

Panic selling has compressed available liquidity, leading to significant price fluctuations and further exacerbating the downward trend.

As of now, Heart is still being detained by the Turkish authorities, awaiting Finland to proceed with the extradition process.