Hex Founder Detained in Turkey Amid $7.15M Seizure and Fraud Allegations
Turkish authorities have detained Hex and PulseChain founder Richard Heart in Istanbul, seizing millions in assets and linking him to allegations of cryptocurrency fraud.
Turkish police have detained Richard Heart, the founder of cryptocurrency platforms Hex and PulseChain, in Istanbul as part of an investigation into alleged fraud. Authorities also seized $7.15 million in cash and six cryptocurrency cold wallets belonging to Heart, whose legal name is Richard James Schueler. The operation, which also saw the detention of his wife and three alleged bodyguards, uncovered luxury items, vehicles, weapons, and computer equipment across 15 properties.
Heart was reportedly sought via an Interpol Red Notice issued by Finland in December 2024, stemming from suspicions of serious tax evasion and assault. Turkish Justice Minister Akın Gürlek further connected the case to allegations involving approximately $1 billion in cryptocurrency fraud. This development follows a previous legal setback for the U.S. Securities and Exchange Commission, which had its lawsuit against Heart dismissed on jurisdictional grounds by a federal judge in February 2025.
In parallel, the cryptocurrency ecosystem faced other significant security incidents. Attackers exploited a vulnerability in Cysic's cross-chain bridge, minting 10 million unauthorized CYS tokens and netting approximately $727,000. The attacker gained unauthorized access to a bridge support database, submitted a fraudulent token creation request, and subsequently sold most of the illicitly minted tokens before Cysic could block the receiving address. While Cysic suspended its bridge and initiated a security investigation, the foundation assured users that its main blockchain network and existing customer assets remained unaffected.
Another incident involved fake security alerts distributed through Ngrave's Liquid wallet app, which led to an estimated $2.65 million in cryptocurrency theft from 84 wallets across six blockchains. The malicious alerts falsely warned users of unauthorized access and directed them to phishing websites to harvest their recovery phrases. Blockchain analytics firm Bitquery traced the stolen funds, noting that a significant portion was converted into a privacy-focused cryptocurrency.
Ngrave confirmed its app notifications were compromised and temporarily suspended the service. The firm cautioned that blockchain records alone could not definitively link all 84 affected wallets to Ngrave customers.
Furthermore, Qubic experienced a $1.4 million token theft after attackers exploited a wallet security flaw affecting wallets created via its web wallet on specific Apple devices and browsers. A faulty random-number generator produced predictable recovery phrases, enabling attackers to compromise accounts. Qubic has since restarted its blockchain operations, fixed the vulnerability, and initiated a recovery process for affected users, who can submit claims through a dedicated platform until May 1, 2027.
These incidents collectively highlight the persistent threats within the digital asset space, ranging from law enforcement actions against alleged fraud to sophisticated exploits targeting blockchain infrastructure and user credentials. The ongoing nature of these challenges underscores the need for robust security measures and vigilant oversight within the cryptocurrency industry.