HEX Sell-Off Intensifies With 60% Drop as PulseX and PLS Suffer Major Losses

HEX tumbled nearly 60%, PulseX declined 49%, and PulseChain’s PLS token lost around 36% after reports claimed that Richard Heart had been detained in Istanbul under an Interpol Red Notice requested by Finland. The sharp sell-off highlights how legal uncertainty surrounding a prominent founder can quickly affect confidence across an entire crypto ecosystem.

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

Finland’s investigation reportedly focuses on suspected aggravated tax fraud involving income from June 2020 to April 2024. Potential unpaid taxes have reportedly been estimated at hundreds of millions of euros. Other reports about Heart’s wanted status have also referenced a separate assault allegation involving a 16-year-old.

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

HEX and PulseChain Tokens Slide as Founder Uncertainty Grows

Richard Heart founded HEX, PulseChain, and PulseX, and his public image has been a major part of their promotion. This dependence on a prominent founder can expose the projects to sudden changes in market sentiment when legal developments raise doubts about leadership, communication, or future execution.

The latest declines do not necessarily indicate that the underlying blockchain systems have experienced technical problems. Instead, traders may be reassessing the risks associated with Heart’s potential absence and the ecosystem’s ability to operate without his direct involvement.

Liquidity conditions can make these reactions more severe. In markets with limited trading depth, a wave of sell orders can widen spreads and accelerate price declines. Liquidations and forced position closures may add to the pressure, creating larger moves than the initial news alone would suggest.

However, falling token prices are not sufficient evidence that a protocol has failed or that its long-term fundamentals have fundamentally changed.

The reported seizure of Heart’s personal property also does not automatically interrupt PulseChain’s operations or invalidate HEX, PLS, or PLSX smart contracts.

Investors are likely to focus on whether independent contributors can maintain development, whether project communications will continue, and whether any wallets mentioned in reporting are connected to assets controlled by the projects.

Separate Investigations Keep Legal Risks in Focus

Heart’s U.S. legal proceedings are separate from Finland’s investigation.

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

The U.S. case and Finland’s investigation involve separate legal matters. Allegations should not be presented as proven facts, and the reported detention does not establish criminal liability.

For HEX, PLS, and PLSX investors, the key issue is whether verified legal developments will affect the projects’ leadership, operations, or ability to maintain community confidence. Any disruption could influence trading sentiment, particularly while uncertainty surrounding Heart remains elevated.

An official Turkish court filing or confirmation of an extradition proceeding would provide greater clarity about the next steps. Until further details are verified, additional volatility remains possible, but neither the eventual legal outcome nor the tokens’ future price direction is certain.