HEX lost roughly $160 million in market capitalization in 24 hours after Turkish media reported that founder Richard Schueler, known as Richard Heart, was detained in Istanbul on Wednesday.

The token fell nearly 30%, dropping to $0.0006 as of 11:28 am UTC on Thursday, according to CoinMarketCap. Market capitalization contracted from more than $500 million on Wednesday to $340 million at press time. For comparison, HEX traded above $0.44 in September 2021.

What did Turkish authorities reportedly seize?

Turkish news agency Ihlas Haber Ajansı (IHA) reported Wednesday that police detained Schueler and his wife in Istanbul. Officers seized multiple devices, hardware wallets, jewelry and handguns, according to the report.

The reported detention follows an Interpol Red Notice issued nearly two years ago. The notice covers allegations of tax fraud and assault, with Finnish authorities seeking his arrest.

A spokesperson for Finland's National Bureau of Investigations declined to comment.

Europe's most wanted fugitives list also names Schueler on similar allegations. The listing states he "physically assaulted a 16-year-old victim by grabbing their hair, dragging them into the stairwell and knocking them to the ground."

What happened to the SEC case?

The US Securities and Exchange Commission sued Schueler in July 2023, alleging he raised $1 billion through an unregistered securities offering and misappropriated at least $12 million.

US District Judge Carol Bagley Amon dismissed the case in February 2025. She ruled the alleged activities were not sufficiently directed at US investors to support the claims. In April 2025, the SEC said it did not intend to refile its securities fraud complaint.

What happens next?

The Istanbul detention shifts Schueler's legal exposure from a closed US civil matter to active European criminal process. Finnish prosecutors must now decide whether to seek extradition, a step that would extend the timeline of a case Interpol has tracked for two years.