HEX Token Sellers Erase $160M Following Reports of Founder Richard Schueler Arrest
The HEX token plummeted nearly 30% within 24 hours, wiping out approximately $160 million in market capitalization following local media reports of its founder, Richard Schueler (also known as Richard Heart), being detained in Istanbul. This development comes amid ongoing legal challenges including international arrest warrants and lawsuits by U.S. regulators, sparking heavy selloffs in the HEX token market.
Sharp Decline in HEX Token Price
As of 11:28 am UTC on Thursday, HEX’s price had dropped to $0.0006, cutting its market cap from over $500 million on Wednesday down to roughly $340 million, according to CoinMarketCap data. The token previously reached a peak value of $0.44 in September 2021.
This nearly 30% plunge over a single day stirred investor anxiety and prompted widespread selling of HEX tokens.
Founder Detained and Search Conducted
On Wednesday, local news agency Ihlas Haber Ajansı (IHA) reported that Richard Schueler and his wife were detained by Turkish authorities in Istanbul. Police seized multiple devices, hardware wallets, jewelry, and firearms during searches.
Reportedly, the detention is linked to ongoing criminal investigations.
Background of Allegations and International Warrants
Nearly two years ago, Interpol issued a ‘Red Notice’ for Schueler. Finnish authorities alleged tax evasion and assault, leading to calls for his arrest.
Additionally, Schueler appears on Europe's most wanted fugitives list facing accusations of physically assaulting a 16-year-old victim by pulling their hair, dragging them into a stairwell, and knocking them to the ground.
Legal Proceedings in the United States
In July 2023, the U.S. Securities and Exchange Commission (SEC) sued Schueler, claiming he raised $1 billion via an unregistered securities offering and misappropriated at least $12 million.
US District Judge Carol Bagley Amon dismissed the case in February 2025, ruling that Schueler’s activities were not sufficiently directed at US investors. In April 2025, the SEC announced it would not refile its securities fraud complaint against him.
Why it matters
This development holds significant importance for the crypto community as it highlights the impact of legal challenges faced by a project’s founder on the price dynamics and market capitalization of the HEX token. The founder’s detention, coupled with his existing international arrest warrants and prior lawsuits in the US, intensified investor distrust and triggered widespread token selloffs. It exemplifies how legal risks within the crypto industry can sharply affect markets, underscoring the necessity for careful monitoring of regulatory and criminal developments related to prominent figures in the crypto ecosystem.
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