Turkish authorities detained Richard James Schueler, known as Richard Heart, a cryptocurrency figure known as “Whale James” and founder of Hex, PulseChain, and PulseX, in Istanbul on October 14, 2026, following an operation involving the country’s National Intelligence Organization (MİT) and police forces.
According to a local report, Schueler was wanted internationally under an Interpol Red Notice and has been accused by the U.S. Securities and Exchange Commission (SEC) of embezzling more than $1 billion in cryptocurrency funds. Authorities also reportedly arrested his wife during the operation.
Searches at the Istanbul property uncovered $4 million in cash, dozens of luxury watches, jewelry, firearms, ammunition, and digital equipment. Turkish authorities have not released an official valuation of the seized assets.
Istanbul raid uncovers cash, watches, and weapons
The operation took place in the Beşiktaş district of Istanbul, reportedly following intelligence that Schueler was in the city. MİT coordinated the operation with Turkish security forces, while special operations teams took part in the raid. Schueler was taken into custody at the property.
Investigators reportedly seized 53 Rolex watches and 11 Patek Philippe watches, along with diamond and gold jewelry. The searches also uncovered unlicensed firearms and ammunition, which were reportedly stored alongside the cash and other valuables.
Authorities have not disclosed the total value of the property seized during the operation.
Investigators seize crypto wallets and digital equipment
The search also extended to materials that could help investigators examine Schueler’s cryptocurrency activity. Items reportedly recovered included cold wallets, encrypted external hard drives, high-performance computers, cryptocurrency mining equipment, and network devices. The materials could provide investigators with information about digital asset holdings and transactions, although authorities have not disclosed whether they have accessed any wallets or identified additional funds.
The case centers on allegations that Schueler misappropriated more than $1 billion in cryptocurrency funds through fraudulent projects and manipulative transactions. He is also accused of attempting to conceal the movement of the funds by dividing them into smaller amounts and routing them through shell companies allegedly established in the United States, Finland, and Spain.
The allegations have not been established in court. The available information does not specify how much of the alleged funds investigators have traced or recovered.
INTERPOL expands cross-border asset tracking
The investigation comes amid broader international efforts to identify and trace assets linked to financial crime, including cryptocurrency holdings.
INTERPOL’s Silver Notice programme, launched in January 2025, allows law enforcement agencies in participating countries to request information about assets potentially connected to criminal investigations. The mechanism covers cryptocurrencies, cash, real estate, vehicles, businesses and other property.
According to an Associated Press report published on September 18, 82 countries were participating in the programme, with authorities identifying at least €36 million ($41 million) in assets. A Silver Notice allows investigators to seek information about assets in other jurisdictions, rather than automatically authorizing their seizure or confiscation.
Separately, INTERPOL’s Operation First Light 2026 involved law enforcement agencies in 97 countries targeting social engineering fraud and associated money laundering networks. In results announced on July 9, the agency reported 5,811 arrests and the interception of nearly $293 million in illicit fiat and digital assets. The operation also identified more than 142,000 potential victims and led to the blocking of 31,014 bank accounts.
SEC previously accused Richard Schueler of misusing investor funds
The detention follows a 2023 enforcement action by the U.S. Securities and Exchange Commission against Schueler and three crypto projects he controlled: Hex, PulseChain and PulseX. In a complaint filed on July 31, 2023, in the U.S. District Court for the Eastern District of New York, the SEC alleged that Schueler and the three entities conducted unregistered crypto asset securities offerings that raised more than $1 billion in digital assets.
The regulator also accused Schueler and PulseChain of misappropriating at least $12 million in offering proceeds to purchase luxury goods, including sports cars, watches, and a 555-carat black diamond known as The Enigma.
According to the complaint, Schueler marketed Hex as a high-yield blockchain certificate of deposit and promoted returns of up to 38% through its staking feature. The SEC alleged that the Hex offering raised more than 2.3 million Ether between December 2019 and November 2020. It also alleged that subsequent offerings for PulseChain and PulseX raised hundreds of millions of dollars through their respective PLS and PLSX tokens.
The SEC charged Schueler, Hex, PulseChain and PulseX with violating the registration provisions of the Securities Act of 1933. It also alleged that Schueler and PulseChain violated federal securities laws’ antifraud provisions.
The regulator sought injunctive relief, disgorgement of alleged ill-gotten gains, prejudgment interest, and civil penalties. These were allegations in the SEC’s complaint and should not be treated as established findings of liability.
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