HEX erases $246 million in market cap after founder detained in TurkeyThe HEX market cap fell from $561 million to $315 million this week after founder Richard Schueler — better known to the crypto community as Richard Heart — was detained by authorities in Istanbul on October 14.
Police seized $7.15 million in cash along with firearms and ammunition during an early morning raid in Istanbul’s Beşiktaş district, alongside searches of 15 related addresses according to Turkish Justice Minister Akın Gürlek.
Police impounded nine luxury vehicles registered to Schueler’s wife according to news agency Anadolu. The haul reportedly included 28 watches, 300 bags and 19 graphics cards.
Interpol issued a “Red Notice” for Schueler’s two years ago over allegations of tax fraud and assault, after Finnish authorities sought his arrest.
A spokesperson for Finland’s National Bureau of Investigations declined to comment on the matter.
Turkish media refer to Schueler as “Whale James” and have linked him to a $1 billion unregistered securities offering in the US. However that case was dismissed by a US judge in February 2025.
Images circulating in Turkish media appear to show a surprised Heart with no trousers on, and the bottom half of his body blurred out, provoking much merriment on social media. Vocal Hex critic Eric Wall, who has debated Schueler on video and social media, said he initially thought the image was AI generated but now believes it is real. (Cointelegraph can only verify the image is circulating not that it has not been altered.)
“i’m pretty much certain i died in a plane crash in 2015 and ever since that day i am still only alive in a fringe reality where everything is designed to be as funny as possible.”Hex supporters claim that authorities are yet to confirm if Schueler has been formally arrested or charged.
Images circulating on Turkish media.
Ledger’s answer to wallet tampering costs $849 and ships next yearLedger unveiled a new device on Thursday with stronger protections against tampering, days after confirming that wallets sold through a reseller in Asia contained malicious implants.
The French hardware wallet maker introduced Atom, an $849 device that combines a crypto wallet with everyday apps through a smartphone-like design. Atom separates Android apps from sensitive wallet operations and includes protections Ledger says would block the implants used in the recent Asia incident. It claims to detect tampering even when switched off.
Expected to become available in summer 2027, Atom will also support AI agent approvals, encrypted messaging and post-quantum cryptography.
Meanwhile a war of words has broken out between former Mt Gox CEO Mark Karpeles, and Ledger CEO Pascal Gauthier. Kapeles claims that at least two people notified Leger of spyware discovered inside tampered Ledgers as far back as December 2025 — and notes the company had even written about the issue on its website in March 2026. He says the company failed to act properly to secure its reseller supply chains, which have now been suspended across Asia after more than $90 million was stolen.
Gauthier snarkily replied on X that Karpeles was “no white knight” and referred back to his failures in the lead up to the Mt Gox hack.
Karpeles replied:
“I was hoping you guys were better than that. I’ve been holding Ledger at a higher standard than what happened at MtGox, because I trusted you to do better by learning of my failure — to be better than me.”Source: QDay gets even closer as Starknet votes on becoming post quantum L1Google has demonstrated a new process called “magic state cultivation” on its Willow quantum processor that reduces errors 40-fold. The technique achieved a record 99.99% accuracy rate for a specialized quantum state required to perform advanced calculations.
Meanwhile Theta Labs has posted three news quantum circuits that could reduce the number of qubits required to break elliptic curve cryptography by 28% from Google’s current estimate of 1,175 logical qubits.
With fears that AI is now getting so good at math that it may be able to break elliptic curve cryptography even before QDay arrives, Starknet has opened a vote to transform itself from an Ethereum L2 into a post quantum L1. StarkWare CEO Eli Ben-Sasson says that Ethereum’s post quantum roadmap may be too slow to meet the challenge from AI, meaning that Starknet needed to consider becoming a fully post quantum L1.
“Quantum-proofing crypto is urgent, so we must move at lightning speed,” he told Cointelegraph. More than 99% of votes cast to date are in favor of the move. Starknet’s token has lost almost 50% in value this week, after a big surge last week.
Standard Chartered pushes $2T stablecoin forecast to 2030 as EU embraces USDCStandard Chartered says stablecoin transaction activity continues to grow even as the market’s overall value has stalled, suggesting existing stablecoins are circulating more frequently rather than new supply driving growth.
The bank said it now expects stablecoin market capitalization to reach $2 trillion by 2030, two years later than initially projected, after the market plateaued at roughly $309 billion this year.
Meanwhile the European Banking Authority has classified Circle’s USDC stablecoin as a significant e-money token under the region’s Markets in Crypto Assets (MiCA) framework. The classification has only been granted to 45 projects.
Binance.US seeks $1B valuation in potential $100M funding roundBinance.US reportedly seeks to raise up to $100 million in a funding round that could value the cryptocurrency exchange at $1 billion.
According to a Thursday Bloomberg report, the US-based crypto exchange is pursuing private investment as it looks to expand its business. The potential $1 billion valuation would be well below the $4.5 billion pre-money valuation it secured in 2022, when it raised $200 million in seed funding.
Winners and LosersAt the end of the week, Bitcoin (BTC) is down 3.8% to trade at $81,484, Ethereum (ETH) is down 5.7% to trade at $2,386 and XRP (XRP) is down 8.3% to $1.28. The total market cap is at $2.72 trillion according to CoinMarketCap.
Among the biggest 100 cryptocurrencies, the top three altcoin winners of the week are Monero (XMR) with a 9.7% gain, Injective (INJ) on 5.6%, and Celestia (TIA) on 5.1%.
The top three altcoin losers of the week are Starknet (STRK) which was down 46.7%, Pump.fun (PUMP) down 27.1% and Raydium (RAY) down 26.5%.
Prediction of the WeekBitwise’s Hougan says Q3 charts point to ‘crypto spring’Bitwise chief investment officer Matt Hougan says Q3 may have been “one of the best quarters in crypto’s history,” arguing a sharp rebound in crypto prices and growing onchain markets point to the start of “crypto spring.”
In its quarterly market review published Thursday, Bitwise reported a 46.4% quarterly gain in its large-cap crypto index, along with $6 billion in US spot Bitcoin ETF inflows that brought year-to-date net flows back into positive territory.
“Page after page after page, it’s all the same: The most recent part of the chart is turning sharply upwards,” Hougan wrote. “That’s exactly what you want to see if you’re looking for the start of a crypto spring.”
Top FUD of the WeekMSCI adopts index exclusion rules that could oust StrategyIndex provider MSCI has adopted new rules that could lead to Strategy, Metaplanet and Upexi being removed from its global indexes, while leaving several other crypto treasury companies facing potential exclusion.
In August, Strategy opposed the changes but also played down the potential disruption, saying funds tracking MSCI’s Global Investable Market Indexes hold approximately 13 million shares, representing 3.1% of its basic shares outstanding. The company said those holdings amount to less than one day’s trading volume.
Russia to ban direct peer-to-peer crypto trades starting July 2027Russia will ban direct peer-to-peer (P2P) cryptocurrency transactions between individuals starting next year, requiring individuals to use authorized intermediaries for such trades.
The regulator said the ban would come into place on July 1, 2027.
The regulator also clarified that individuals are not allowed to transfer crypto assets from their digital accounts to their own non-custodial, or self-custodial, wallets.
Ex-Trump crypto adviser profited after helping pass stablecoin bill: WSJBo Hines, previously a crypto adviser to US President Donald Trump who later joined stablecoin issuer Tether, reportedly kept a stake in a company that profited from the passage of a stablecoin bill when he was still at the White House.
According to The Wall Street Journal, Hines had a one-third stake in the investment company he co-founded, Nxum, while pushing US lawmakers to pass the GENIUS Act. Nxum reportedly received $6.3 million as part of a deal with stablecoin issuer Tether, with the first payment going through while Hines was still serving in government.
Cointelegraph publishes long-form journalism, analysis and narrative reporting produced by Cointelegraph’s in-house editorial team with subject-matter expertise. All articles are edited and reviewed by Cointelegraph editors in line with our editorial standards. Some articles contain affiliate links, from which Cointelegraph may earn a commission. These relationships do not influence which products we review or our editorial conclusions. Content published in here does not constitute financial, legal or investment advice. Readers should conduct their own research and consult qualified professionals where appropriate. Cointelegraph maintains full editorial independence.
Turkish Justice Minister Akın Gürlek confirmed on October 17 that Richard James Schueler — the founder of HEX, PulseChain and PulseX widely known as Richard Heart — was detained in Istanbul on October 14. The arrest closes a years-long international pursuit of one of crypto’s most controversial founders, and it raises the question now hanging over the tokens he built: what actually happens to HEX and PulseChain with their creator in custody?
Gürlek announced the operation in a statement on X, describing Heart as a U.S. citizen reported to have an Interpol red notice issued against him on allegations of perpetrating a $1 billion cryptocurrency fraud in the United States and Finland. Heart was taken into custody along with his wife.
What Turkish Authorities Say They Found
The operation was coordinated by the Istanbul Chief Public Prosecutor’s Office with the city police’s intelligence and financial crimes units, supported by Turkey’s National Intelligence Organization (MİT). Searches across 15 addresses in Beşiktaş, Üsküdar and Sarıyer recovered $7.15 million in U.S. currency and 160,000 Turkish lira, six cold wallets, and a list of goods Gürlek enumerated in full: 300 bags, 100 pairs of shoes, 136 pairs of glasses, 28 watches, 97 pieces of jewelry, 29 phones, 12 laptops, 11 computer towers, 19 solid-state drives and external disks, 46 USB drives, and 19 graphics cards.
Police also seized four long-barreled rifles, three unlicensed pistols and 1,400 rounds of ammunition. Three men identified as Heart’s bodyguards were detained in a follow-up, and state news agency Anadolu reported that nine vehicles registered to Heart’s wife were impounded. Judicial proceedings and examination of the seized material are ongoing.
From an SEC Lawsuit to an Interpol Red Notice
The arrest is the latest turn in a legal record that stretches back years. In July 2023, the U.S. Securities and Exchange Commission sued Heart and his three entities, alleging they raised more than $1 billion through unregistered crypto asset securities offerings and that he misappropriated at least $12 million for personal luxury purchases. That case remains unresolved. A separate Interpol red notice was issued at Finland’s request in December 2024 over suspected aggravated tax fraud tied to his crypto activities, the basis Turkey cited in confirming the detention.
HEX, the certificate-of-deposit-style token Heart launched in 2019, is the common thread across both cases. A BlockchainReporter breakdown of HEX tracks how the token’s own positioning eventually gave way to a slide toward all-time lows.
What the Arrest Means for HEX and PulseChain
Heart’s detention does not stop the networks he built. PulseChain is a running layer-1 blockchain and PulseX a live decentralized exchange, both maintained by community participants rather than a single company. But the arrest removes the figure whose personal brand anchored the ecosystem, and the seized cold wallets are now a focal point: authorities have not said what they hold or whether the assets relate to the alleged fraud.
The situation echoes other cases where a founder’s legal exposure left a live network in limbo. Terraform Labs co-founder Do Kwon’s extradition was authorized by a court after a similarly drawn-out international pursuit, a reminder of how slowly such proceedings can move.
What Happens Next
Turkish officials have not announced an extradition decision, and it is not yet clear whether Heart would be sent to Finland, the United States, or face proceedings in Turkey first. The allegations against him remain unproven. For now the immediate question is procedural — where the case is heard next — while the longer-term question is whether HEX and PulseChain can keep functioning without the founder whose name is attached to both.
AUTHOR
Jide Idowu is a skilled freelance writer with expertise in blockchain technology, cryptocurrency, and digital finance. Known for his ability to break down complex topics into clear, engaging content, Jide crafts articles, blog posts, and analyses that resonate with both beginners and seasoned professionals. His work spans a wide range of subjects, from emerging crypto trends to in-depth explorations of blockchain innovations. With a keen eye for detail and a passion for educating readers, Jide is a reliable voice in the rapidly evolving world of digital assets.
The Hex (HEX) token fell nearly 30% in the past 24 hours after local media reports of founder Richard Schueler, also known as Richard Heart, being detained by authorities in Istanbul.
The HEX token declined to $0.0006 as of 11:28 am UTC on Thursday, erasing about $160 million from its market capitalization, from more than $500 million on Wednesday to $340 million by press time, according to CoinMarketCap. It previously topped $0.44 in September 2021.
On Wednesday, news outlet Ihlas Haber Ajansı (IHA) reported that Schueler and his wife were detained in Istanbul by Turkish authorities. Police reportedly seized multiple devices, hardware wallets, jewelry and handguns.
The reported arrest comes nearly two years after the world’s largest international police organization, Interpol, issued a “Red Notice” for Schueler for allegedly committing tax fraud and assault, with Finnish authorities seeking his arrest.
A spokesperson for Finland’s National Bureau of Investigations declined to comment on the matter.
Schueler was also listed on Europe’s most wanted fugitives list on similar allegations, claiming that he “physically assaulted a 16-year-old victim by grabbing their hair, dragging them into the stairwell and knocking them to the ground.”
In July 2023, the US Securities and Exchange Commission (SEC) sued Schueler, alleging he raised $1 billion in an unregistered securities offering and misappropriated at least $12 million.
US District Judge Carol Bagley Amon dismissed the case in February 2025, after ruling that the activities were not sufficiently directed at US investors. In April 2025, the SEC said it didn’t intend to refile its securities fraud complaint against Schueler.
Cointelegraph is committed to independent, transparent journalism. This news article is produced in accordance with Cointelegraph’s Editorial Policy and aims to provide accurate and timely information. Readers are encouraged to verify information independently.
The Hex (HEX) token fell nearly 30% in the past 24 hours after local media reports of founder Richard Schueler, also known as Richard Heart, being detained by authorities in Istanbul.
The HEX token declined to $0.0006 as of 11:28 am UTC on Thursday, erasing about $160 million from its market capitalization, from more than $500 million on Wednesday to $340 million by press time, according to CoinMarketCap. It previously topped $0.44 in September 2021.
On Wednesday, news outlet Ihlas Haber Ajansı (IHA) reported that Schueler and his wife were detained in Istanbul by Turkish authorities. Police reportedly seized multiple devices, hardware wallets, jewelry and handguns.
The reported arrest comes nearly two years after the world’s largest international police organization, Interpol, issued a “Red Notice” for Schueler for allegedly committing tax fraud and assault, with Finnish authorities seeking his arrest.
A spokesperson for Finland’s National Bureau of Investigations declined to comment on the matter.
Schueler was also listed on Europe’s most wanted fugitives list on similar allegations, claiming that he “physically assaulted a 16-year-old victim by grabbing their hair, dragging them into the stairwell and knocking them to the ground.”
In July 2023, the US Securities and Exchange Commission (SEC) sued Schueler, alleging he raised $1 billion in an unregistered securities offering and misappropriated at least $12 million.
US District Judge Carol Bagley Amon dismissed the case in February 2025, after ruling that the activities were not sufficiently directed at US investors. In April 2025, the SEC said it didn’t intend to refile its securities fraud complaint against Schueler.
Cointelegraph is committed to independent, transparent journalism. This news article is produced in accordance with Cointelegraph’s Editorial Policy and aims to provide accurate and timely information. Readers are encouraged to verify information independently.
Turkish outlets say Heart and his wife were taken into custody in Istanbul on Wednesday, though no official has confirmed it and the reported seizure figures differ.
HEX founder Richard Heart was reportedly detained in Istanbul
Posted October 15, 2026 at 7:01 am ET.
Richard Heart, the founder of the HEX, PulseChain and PulseX crypto projects, was taken into custody in Istanbul on Wednesday, according to Turkish media. The daily Sözcü reported that Turkey’s intelligence agency (MIT) and Istanbul police picked him up in a dawn raid on a home in the city’s Beşiktaş district. The Ihlas News Agency (IHA), in a report carried by Daily Sabah, said his wife, identified only as A.K., was detained with him after police kept the address under surveillance.
No statement from Turkish police, prosecutors or ministries could be found as of early Thursday, and neither Heart nor PulseChain has commented publicly. The Turkish reports describe police custody; none has reported a court-ordered arrest, a release or an extradition request.
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Finland’s Red Notice
Both outlets name him as Richard James Schueler, Heart’s legal name. IHA linked the operation to an Interpol Red Notice issued at Finland’s request. The notice was first reported in December 2024. A Red Notice asks police in other countries to locate and provisionally arrest someone; it is not an arrest warrant, and each country decides whether to act on it.
Finnish authorities remanded Heart in absentia in September 2024 on suspicion of tax evasion between 2020 and 2024 and of assaulting a 16-year-old in February 2021, according to Europol’s most-wanted listing.
Reports Differ on the Seizure
Sözcü, citing broadcaster TV100, put the haul at $4 million in cash and 64 luxury watches, along with jewelry, firearms and crypto mining equipment. Journalist Çağdaş Evren Şenlik wrote on X that officers found $600,000, 24 watches, 20 gold bracelets, three pistols and four rifles. IHA listed phones, laptops, graphics cards, guns, two drones, gold bracelets and cash in several currencies, without totals. No official inventory has been published.
Sözcü said the SEC accuses Heart of embezzling $1.5 billion, and Şenlik wrote that he faces the same accusation in the U.S. When it sued in 2023, the SEC said in a press release that offerings by Heart and three entities he controlled “raised more than $1 billion in crypto assets from investors,” and alleged that he misappropriated at least $12 million. Judge Carol Bagley Amon dismissed the case in February 2025 for lack of jurisdiction, writing that the alleged misappropriation ran through wallets and platforms “none of which were alleged to have any connection with the United States.” The SEC said it would not refile, and the court docket was closed in May 2025.
HEX on Ethereum fell about 32% and PulseX about 36% in the 24 hours to 12:42 a.m. ET Thursday, according to CoinGecko data, while bitcoin fell about 3% and ether about 5%.
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AI-assisted content: This article was produced with the assistance of AI tools and was reviewed, edited, and fact-checked by a member of the Unchained editorial team before publication.
Richard Heart, the founder of PulseChain, Hex and PulseX, was today arrested in Istanbul, Turkey on allegations of aggravated tax fraud.
Officially known as Richard James Schueler, the crypto mogul was taken into custody based on an Interpol Red Notice issued at the request of Finland. The operation was conducted by the Istanbul Police, Anti-Financial Crimes branches, and the nation’s National Intelligence Organization.
Other than evading hundreds of millions in taxes between 2020 and 2024, Heart has also been accused of assault.
The raid that led to his arrest took place in Istanbul’s high-end district of Beşiktaş. There, law enforcement seized an immense stash of luxury goods and electronics. Confiscated items included $4 million in cash in various vacuum-sealed currencies, encrypted cold storage wallets, and heavy-duty crypto mining equipment.
Richard Heart’s history of legal battles Before his arrest today, the crypto mogul had been sued by the US Securities and Exchange Commission (SEC) in 2023 for allegedly misappropriating $12 million worth of investor funds to buy luxury items.
However, the case seems to have hit a dead end after a federal judge dismissed it due to a lack of global activity jurisdiction, and the agency declined to appeal.
PulseChain, HEX, PulseX market impactFollowing the arrest, the “Heartchain” ecosystem’s value took a massive hit. Its native gas token PulseChain (PLS) tanked roughly 45%-50% to trade at $0.059. HEX, a high-yield blockchain certificate of deposit, plummeted 30% to trade at $0.00066. Meanwhile, PulseX (PLSX), the native utility and governance token, plunged 31% to trade at $0.055.
Source: CoinMarketCap
Panic selling has strained the available liquidity, causing massive price shifts that further compound the downward price trend.
For now, Heart remains under Turkish custody, awaiting Finland to follow up on the extradition process.
Story Ends Here
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According to multiple Turkish media reports, early local time today, Turkey’s National Intelligence Organization (MİT) and Istanbul police launched a joint operation in Istanbul’s Beşiktaş district, arresting Richard Heart (real name Richard James Schueler), founder of HEX, PulseChain and PulseX, and his wife. The arrest was executed under an Interpol Red Notice issued by Finland at the end of 2024, on charges including aggravated tax fraud. During the operation, a large quantity of cash, dozens of luxury watches, firearms and ammunition, and electronic devices were seized; specific amounts have not been disclosed. Richard Heart is a controversial figure in the cryptocurrency space. In 2023, the U.S. Securities and Exchange Commission (SEC) sued him and his associated entities for conducting unregistered securities offerings, claiming over $1 billion in fundraising, though the case was later dismissed due to jurisdictional issues.
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Turkish intelligence officers and police detained HEX founder Richard Heart in Istanbul on Wednesday, local media reported. He has been wanted under an Interpol Red Notice, a global request to arrest someone pending extradition, since December 2024.
Neither Turkish nor Finnish authorities have publicly confirmed the arrest. Reports also disagree on what officers found inside his home.
What Did Police Reportedly Find in Richard Heart’s Home?Heart, whose legal name is Richard James Schueler, created HEX and PulseChain, crypto tokens he promoted heavily online.
Turkey’s National Intelligence Organization (MIT) and Istanbul police tracked him to a home in the Beşiktaş district, Daily Sabah reported. His wife was also taken into custody.
Citing Ihlas News Agency, the outlet listed phones, laptops, graphics cards, rifles, pistols, two drones, gold bracelets, and cash in several currencies among the seized items.
TURKISH INTERPOL ARRESTS RICHARD HEART, FOUNDER OF HEX AND PULSECHAIN: SÖZCÜ
— Aggr News (@AggrNews) October 14, 2026 The amounts vary sharply by outlet. Sabah reported 53 Rolex and 11 Patek Philippe watches, plus about $4 million in vacuum-sealed cash.
In contrast, Euronews Türkçe counted 24 watches, $600,000, €2,600, 50,000 Turkish lira, and 1,360 rounds of ammunition.
Why Does Finland Want Him Back?Finnish police suspect Heart of evading several hundred million euros in taxes between June 2020 and April 2024, broadcaster Yle reported. He was remanded in absentia in September 2024.
Europe’s most-wanted list also accuses him of punching a 16-year-old in the face and head. Both remain allegations, and he has not been convicted.
In 2023, the SEC separately accused him of raising over $1 billion through unregistered token sales.
However, a US judge threw out that case in 2025, ruling his marketing did not specifically target Americans. It was an SEC lawsuit win for Heart.
The Finnish probe is criminal, not civil. Interpol flagged Heart as wanted at Finland’s request.
Meanwhile, PulseChain (PLS) fell 44% over the past 24 hours, while HEX (HEX) rose 3.9%, BeInCrypto data shows.
PulseChain (PLS) Price Performance. Source: CoingeckoWhether Heart faces those Finnish allegations in person now depends on extradition. Sabah reported a transfer is under consideration, though no formal request has been made public.
Richard Heart, the cryptocurrency entrepreneur behind HEX, PulseChain and PulseX, was reportedly detained in Istanbul Wednesday under an Interpol Red Notice.
What Turkish Authorities Say HappenedDaily Sabah reported Wednesday that Turkish intelligence and police teams detained Heart, also known as Richard James Schueler, along with his wife at an address in Istanbul’s Beşiktaş district.
Authorities seized a large amount of cash in different currencies, jewelry, firearms, drones and digital devices during the operation, according to the report.
Interpol issued the Red Notice in 2024 at Finland’s request over allegations of high-value cryptocurrency fraud.
Turkish police had monitored Heart’s address through technical and physical surveillance before making the arrest.
The detention comes roughly 18 months after a federal judge threw out the SEC’s $1 billion fraud case against Heart.
How This Differs From the SEC’s Original CaseThe SEC first sued Heart in July 2023, alleging he raised more than $1 billion through unregistered crypto offerings tied to HEX, PulseChain and PulseX.
The agency also accused him of misusing at least $12 million in investor funds on luxury purchases, including sports cars, Rolex watches and a 555-carat black diamond called “The Enigma.”
That case ended in Heart’s favor:
February 2025: US District Judge Carol Bagley Amon dismissed the SEC’s lawsuit. Why it was dismissed: the agency failed to show sufficient ties between Heart’s conduct and the United States. The judge’s reasoning: Heart’s online statements targeted a global audience rather than U.S. investors specifically, and the alleged misappropriation occurred entirely through digital wallets and platforms with no U.S. connection. A spokesperson for Heart said at the time that the ruling brought “welcome relief and opportunity to all cryptocurrencies.”
Why This Arrest Is a Separate MatterWednesday’s detention stems from Finland’s Interpol request over alleged crypto fraud, not the dismissed SEC case.
The two matters involve different jurisdictions and different legal theories, though both center on allegations tied to Heart’s crypto ventures.
Photo via Shutterstock
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HEX founder Richard Heart was detained in Istanbul on a Finnish Interpol notice tied to alleged tax fraud.
Turkish police and intelligence officers detained HEX and PulseChain founder Richard Heart in Istanbul on Wednesday, Turkish media reported. The arrest stems from Finland’s long-running tax case against him, not the SEC fight he won last year.
What’s the Scoop? The raid: Officers watched Heart’s residence in the Beşiktaş district before detaining him and his wife. Local outlets report that cash, dozens of luxury watches, and firearms were seized, though the tallies differ between reports.
Finland’s case: Interpol issued a Red Notice for Heart at Finland’s request in December 2024. The notice concerns alleged aggravated tax fraud worth hundreds of millions of euros. Heart hasn’t been convicted, and no extradition request has been confirmed yet.
The SEC saga: In 2023, the SEC sued Heart, alleging more than $1B in unregistered offerings. The suit was tossed in 2025 for lack of jurisdiction, with a court ruling that Washington couldn’t reach him. Finland’s tax authorities don’t have that problem.
William M. Peaster 1070 posts
William M. Peaster, Senior Writer, has been with Bankless since January 2021. Immersed in Ethereum since 2017, he covers the onchain frontier with a particular interest in art, games, and other culture apps. He has a background in creative writing and writes fiction in his free time.
Richard Heart, the founder of HEX and PulseChain, has reportedly been detained in Istanbul following an operation involving Turkish police and the country’s intelligence agency.
Authorities have not confirmed whether he is still in custody or being extradited.
Turkish media report Istanbul detention
Heart was arrested in Istanbul’s Beşiktaş district on October 14, Ihlas News Agency reported, cited by Turkish Daily Sabah.
Heart’s full name, legally, is Richard James Schueler, and the operation has been tied to an Interpol Red Notice coming from Finland.
Heart and his legal team were also silent, not yet releasing a statement that confirms this. The Turkish prosecutors, Finland’s police, and Interpol also had no statements out at the time of this writing verifying these claims.
The reports of the items seized in the raid varied wildly – some claiming authorities had found $600,000 and others up to $4 million. The number of watches recovered also changed.
As there is no official inventory, these figures cannot be substantiated independently.
Why Finland was looking for Heart
The Finnish case dates back to 2024 and concerns suspected aggravated tax fraud and assault.
Finnish broadcaster Yle reported that a court remanded Heart in custody in his absence in September 2024. Police suspected that his tax filings did not match the income assessed by Finland’s Tax Administration.
Heart allegedly committed this tax conduct from June 2020 at the earliest to April 2024 at the latest. Police told Yle that there was a lot of money involved and the tax issue appeared to have continued over several years. Heart was not convicted of these allegations.
This Finnish investigation is also a completely separate one from the US Securities and Exchange Commission’s case connected to HEX, PulseChain, and PulseX.
A US judge dismissed that lawsuit in February 2005. They found that the SEC had not established enough links between the alleged conduct of the officials and the United States, and the ruling had been on jurisdiction, not the Finnish allegations.
Final Summary
It has not been confirmed whether Heart is still imprisoned or whether he has been extradited yet either.
No Official Inventory of the property, money, watches, and other seized property.
Some rather awkward footage of a recent Bitcoin conference has surfaced. The clip shows a recently fallen-from-grace Bitcoin OG called out on stage for shilling an altcoin at the BTC-only event.
One of the earliest public proponents of Bitcoin recently became every self-respecting BTC maximalist’s public enemy number one. Trace Mayer, the host of the ‘Bitcoin Knowledge’ podcast, has been reportedly shilling the recently-created privacy coin Mimblewimble Coin (MWC).
A Bitcoin Event is a Good Place to Shill Altcoins, Right?Mayer first started talking about Bitcoin in 2010. He is more recently known for his promotion of the annual ‘proof-of-keys’ event, which BeInCrypto has previously reported on. His staunch championing of monetary sovereignty and his libertarian tendencies have made him popular with many Bitcoin fans.
The recent allegations against Mayer seem to stem from a Bitcoin-only conference held last weekend. Trader and YouTuber Tone Vays hosts the’ Unconfiscatable’ event that sees many so-called BTC maximalists meet to talk about Bitcoin, listen to presentations while eating steak, and even show off their skills in a poker tournament.
During the event, Mayer had been supposedly talking favorably about MWC to attendees. He’s even also spoken very highly of the project on YouTube interviews.
The industry disappointment mostly comes from MWC’s distribution model. The project features a huge pre-mine of 50 percent of all 20 million tokens.
Question: Is MimbleWimble coin a scam?
I just watched Trace Mayer pumping it: https://t.co/ovwXapN6sF
Then I looked at the white paper and found that there is a 50% premine!https://t.co/WksnAH8Azp pic.twitter.com/BOxFhMXE9l
— Opportunity from chaos (@cryptocomicon) February 23, 2020
Many of those critical of Mayer say he has abused his position as a respected thought leader in the industry and that he stands to gain financially by pumping the project.
Footage has now surfaced in which Mayer is, quite brutally, called out in front of the ‘Unconfiscatable’ crowd. Amusingly, long-time Bitcoin advocate and programmer Giacomo Zucco decided to wait for a portion of the show called ‘The Scammy Awards.’
After the nominees for the ‘biggest scammer in cryptocurrency’ are read out — the likes of Richard Heart of HEX and Craig Wright of BSV fame were among those shortlisted — Mayer, who spoke at the event, is called up to the stage to present the award.
Suddenly, Zucco hops on the microphone to give Mayer a thorough dressing down:
“The real scam is producing a scam that you can actually sell and pump inside Bitcoin conferences, scaring people about CoinJoin, and promoting scams like Grin and Mimblewimble – that’s the real scam!”
When Mayer finally announces that fellow BTC maximalist-turned-altcoin-shill Richard Heart has won the award, he seems visibly distressed. With none of his usual charm, his words, “It’s HEX” are barely audible over the jeers of the pro-BTC crowd.
That awkward moment when you nominate someone else the award you were hoping for..
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In his latest livestream titled “Cargo Cults and the Reality of Crypto,” Cardano founder Charles Hoskinson delivered an extensive monologue on what he perceives as the current state of digital assets, community behavior, and ongoing legal battles in the sector. The discussion delved into industry history, the fate of long-forgotten projects, and the sometimes-troubling culture that can arise around certain tokens.
Cardano Founder Speaks Out On HEX Broadcasting from Colorado, Hoskinson began by explaining his recent move back to his farm and expressing excitement about nearing completion of construction. He quickly shifted focus to a broader assessment of the crypto landscape, noting that tens of thousands of cryptocurrency projects exist and that new ones frequently emerge, while older ones fade or even reawaken.
“As many of you know, there are probably more than 30,000 cryptocurrency projects floating around,” Hoskinson said. “We pay attention to maybe 50 to 100 at any given time that are interesting in novel.” He categorized most projects into three buckets: Failed or fading projects (e.g., Peercoin, NXT, Feathercoin), projects that were outright scams (e.g., BitConnect, Celsius, and Luna) and the third bucket, projects that are “curiosities,” with unusual communities and nontraditional approaches to tokenomics, marketing, or culture.
From this framework, the Cardano founder homed in on how certain projects—what he labeled as the “third bucket”—tend to behave. He singled out Hex and PulseChain as an example, stressing that those communities have repeatedly demanded his input in Ask Me Anything (AMA) sessions. “Every single AMA I have done for the last probably five years […] there’s been at least one person saying, ‘What do you think of Richard Heart? What do you think of PulseChain? What do you think of Hex?’”
He stated that, technically speaking, he remains largely uninterested: “Don’t know much about it […] outside of the fact that I know Richard Hart is an incredibly ostentatious and unusual person who buys lots of luxury goods […] and seems to have a popular YouTube channel.”
While not assigning guilt or innocence, Hoskinson highlighted that the US Securities and Exchange Commission (SEC) brought forward a personal case against Hart for alleged fraud and misappropriation of $12.1 million. He contrasted that situation with ongoing SEC cases against companies such as Coinbase, Binance, and Kraken, which focus on whether certain assets are securities:
“Cases like the one against Richard are different and those will persist,” he argued, further noting that the SEC complaint includes claims of personal misconduct and misuse of funds, rather than solely token classification questions.
Hoskinson also mentioned reports of an Interpol Red Notice tied to Hart, along with allegations related to tax evasion in Finland and an assault case. He cited this as evidence that the situation extends beyond civil disputes and may invite coordination from the IRS and US Department of Justice in criminal matters.
“There is an Interpol red notice […] that’s an undebatable, undeniable thing,” the Cardano founder asserted, though he acknowledged that some within these communities believe the charges to be fabricated.
After referencing these details, Hoskinson revealed that he has been bombarded with accusatory comments and tweets from certain PulseChain and Hex supporters. He said their aggressive approach ultimately discourages any possibility of collaboration: “You will achieve absolutely nothing by further harassment […] all you’ve achieved is whatever little interest I may have had of actually looking into your ecosystem is now over.”
He then drew parallels to other crypto founders or personalities who, in his view, foster contentious communities—specifically comparing the situation with Craig Wright and his Bitcoin SV (BSV) backers: “This is what happened in the BSV community with Craig. We all watched it [… ] and honestly, ask yourself, how many people are waking up today and saying, ‘Boy, I can’t wait to build my next project on BSV’?”
Hoskinson concluded with what he deemed “unsolicited advice,” urging these communities to evaluate the kind of ecosystems they want to become—independent of their founders—and whether the current approach will foster partnership or repel potential collaborators. “If you’re truly a cryptocurrency and you’re truly decentralized, you should be self-governing and you should be different from your founder,” he said. “If that’s the case, you have to ask yourself again what type of ecosystem do you want to be?”
Despite the harsh tone, Hoskinson wished the communities luck, emphasizing that Cardano itself intends to remain neutral and uninvolved: “I have nothing against anyone in the PulseChain community, the Hex community […] I don’t care about your ecosystem,” he stated, adding that he will not be engaging further on the issue.
At press time, Cardano traded at $0.95.
Cardano finds support at the 0.236 Fib, 4-hour chart | Source: BTCUSDT on TradingView.com Featured image from YouTube, chart from TradingView.com
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With Trump’s arrival, a significant positive shift for crypto investors has primarily occurred within the SEC. Recently, the agency announced that meme coins are not classified as securities. In a further development, another altcoin‘s lawsuit was dismissed, contributing to a rise in its price.
Why is HEX Coin Rising?The SEC has recently taken substantial steps forward. The lawsuit against Binance has been frozen for 60 days, and the lawsuit against Coinbase has been officially dismissed. Investigations into MetaMask and UniSwap have also been closed, and the Wells notice sent to Robinhood was concluded without action. As a result, the price of HEX Coin surged again amidst a general market downturn, following the dismissal of charges against its founder.
Judge Carol Bagley Amon of the U.S. District Court in Brooklyn officially dismissed the case. The SEC had accused PulseChain and Richard Heart of defrauding investors. Unlike other lawsuits, this case involved allegations of misuse of funds, with claims that the team spent collected funds on luxury expenses instead of technology development.
What set this dismissal apart from others like Coinbase was the judge’s determination that the allegations were insufficient. The SEC retains the right to reopen the case within 20 days, potentially reversing today’s price surge if they provide additional evidence. This ruling might serve as a precedent for other “misuse of funds” lawsuits, prompting the SEC to continue demonstrating its commitment to fighting fraud, especially if solid evidence is presented.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should conduct their own research.
A US judge ruled that the SEC lacked jurisdiction over Heart’s crypto activities. The SEC accused Heart of misappropriating $12.1 million for luxury purchases. A US judge has dismissed the Securities and Exchange Commission’s (SEC) fraud lawsuit against Hex founder Richard Heart. The judge ruled that the US lacked jurisdiction over the case.
On February 28, US District Judge Carol Bagley Amon dismissed the SEC’s claims against Heart. The regulator accused him of raising over $1 billion through unregistered crypto offerings. It also alleged that he misappropriated $12.1 million to buy luxury items, including the world’s largest black diamond.
However, Amon ruled that the SEC failed to prove Heart’s activities targeted US investors. She stated that his alleged fraudulent actions occurred globally, not within US jurisdiction. The court also found no link between the misappropriated funds and the United States.
The SEC alleged that Heart spent investor funds on personal luxury purchases. These included McLaren and Ferrari sports cars, four Rolex watches, and a 555-carat black diamond called “The Enigma.” The regulator also claimed that his projects Hex, PulseChain, and PulseX were unregistered securities.
Despite these accusations, the judge ruled that the SEC could not prove the transactions occurred in the US. Heart’s promotions on YouTube and social media targeted a global audience. The court determined that this was not enough to establish US jurisdiction.
Heart Celebrates Legal Victory Heart responded positively to the ruling. He stated that winning a case against the SEC is rare. He also emphasized that Hex has operated flawlessly for over five years.
Following the court’s decision, PulseChain, PulseX, and HEX saw a sharp increase in value. HEX surged 78%, PulseX rose 67%, and PulseChain gained 36%. Heart credited the ruling for the price surge and expressed relief over the outcome.
Despite his legal win in the US, Heart still faces challenges in Finland. Authorities arrested him in September 2024 on tax fraud and assault allegations. However, he remains missing, and Interpol issued a Red Notice against him in December. Authorities managed to seize $2.6 million worth of watches believed to belong to Heart. Meanwhile, he continues promoting his cryptocurrencies on social media.
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Hex token, affiliated with Richard Heart’s PulseChain blockchain, surged over 75% after a US judge tossed a fraud case involving the founder and the SEC.
The token posted this meteoric pump in the past 24 hours, moving from around $0.00225 to its current price of $0.003972. Meanwhile, other assets linked to Richard Heart also surged substantially, with Pulsechain (PLS) and PulseX (PLSX) growing 34% and 61%, respectively.
This upward trajectory came on the back of the US district court dismissing a legal contest involving Heart and the US Securities and Exchange Commission (SEC). The presiding judge, Carol Bagley Amon, ruled on the case on Friday, acquitting the crypto founder of all fraud allegations.
Heart Walks Free After SEC Brawl In July 2023, the US SEC sued Heart for raising $1 billion by selling unregistered securities to US investors. Furthermore, the regulators alleged that he defrauded users of $12.1 million and spent it on luxury cars and rare collections.
One of the priced collections Heart allegedly bought was “The Enigma,” a 555.55-carat black diamond sold for $4.4 million in February 2022. The US citizen who resided in Finland also acquired McLaren and Ferrari sports cars and luxury Rolex watches.
#AuctionUpdate "The Enigma": This 555.55 carat Black Diamond sold today for £3,161,000 / $4,292,322. The buyer has opted to use cryptocurrency for the purchase. #SothebysJewels pic.twitter.com/ZuiL9SxET8
— Sotheby's (@Sothebys) February 9, 2022
Notably, Judge Amon found Heart’s crypto activities beyond the US SEC’s purview. The court noted that the regulator could not prove that the founder’s crypto platform and wallets were within the US’s jurisdiction. This resulted in the dismissal.
“To the extent the complaint shows that Heart misappropriated investor funds through deceptive mixer transactions, those actions occurred entirely outside of the United States,” the judge stated.
A Rare Win Against the SEC Meanwhile, the PulseChain founder took to X to celebrate the “rare” victory against the US SEC. He tweeted that Amon correctly ruled that the tokens under the PulseChain ecosystem (PLS, PLSX, and HEX) are not securities and can now flourish with other assets in the crypto space.
I appreciate Judge Amon's careful ruling which has dismissed all of the SEC's claims against me. This type of victory over the SEC is quite rare. PulseChain, PulseX and HEX are not securities and should be allowed to flourish. HEX has operated flawlessly for over 5 years. Today's…
— Richard Heart (@RichardHeartWin) February 28, 2025
Furthermore, he appreciated President Donald Trump’s support for the digital asset industry and the regulatory clarity it has brought. Heart also insisted that HEX has flawlessly operated for 5 years, and the Friday ruling brings further relief to the project and the broader crypto industry.
Moreover, the case adds to the growing list of SEC litigations that are now underwater. In the past week, the regulator dropped its legal battles with Coinbase, Robinhood, and Gemini, among others.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
A US federal court has dismissed the SEC’s lawsuit against Richard Heart, the founder of HEX, citing jurisdictional overreach.
Following the decision, tokens associated with Heart—HEX, PulseChain, and PulseX—have surged in value, with HEX leading the rally with a nearly 80% gain.
Judge Rules Against SEC in Richard Heart CaseOn February 28, the US District Court for the Eastern District of New York ruled in favor of Richard Schueler, widely known as Richard Heart, dismissing the SEC’s lawsuit against him.
The agency had accused Heart of conducting an unregistered securities offering, alleging that he raised over $1 billion in cryptocurrency assets.
It also claimed that Heart and his blockchain project, PulseChain, misappropriated at least $12 million for luxury purchases, including high-end cars, watches, and a rare black diamond.
Heart resisted these claims, arguing that the SEC lacked jurisdiction over his activities. He maintained that the regulator failed to prove that his actions specifically targeted US investors or violated domestic securities laws.
US District Judge Carol Bagley Amon sided with Heart, stating that the SEC did not establish a sufficient legal basis for its case.
The judge also found that Heart’s marketing efforts were globally available and not specifically directed at US investors. The SEC had claimed Heart extensively promoted his projects through websites and social media.
However, the court determined that simply providing information online does not constitute sufficient grounds for jurisdiction.
“Heart did not directly message US-based investors or respond to questions through his websites. Rather, Heart disseminated ‘how to’ information, which alone is not sufficient. Accordingly, Heart’s website contacts simply provided globally available information and lack sufficient interactivity to constitute a significant contact,” Judge Amon wrote.
Additionally, the judge ruled that the SEC failed to demonstrate that Heart’s alleged misconduct, including misappropriation of funds and deceptive transactions, took place within the US.
“The alleged misappropriation occurred through digital wallets and crypto asset platforms, none of which were alleged to have any connection with the United States,” the Judge ruled.
Meanwhile, the ruling also determined that even if the SEC had proven jurisdiction, its complaint lacked substantial evidence of domestic securities law violations. As a result, the case was dismissed.
“Even if the SEC had established personal jurisdiction over Heart, the Complaint cannot stand because it fails to adequately plead that either the transactions or conduct at issue were domestic under the federal securities laws,” Judge Amon stated.
HEX and PulseChain Surge Following Legal VictoryReacting to the court’s decision, Heart described the ruling as a rare victory for the cryptocurrency industry.
He emphasized that HEX, PulseChain, and PulseX should be allowed to operate freely, stating that HEX has functioned without issue for over five years.
“This type of victory over the SEC is quite rare. PulseChain, PulseX and HEX are not securities and should be allowed to flourish. HEX has operated flawlessly for over 5 years. Today’s decision in favor of a cryptocurrency founder and his projects over the SEC brings welcome relief and opportunity to all cryptocurrencies,” Heart stated.
HEX Price Surge After SEC’s Legal Defeat. Source: GeckoTerminalFollowing the decision, the tokens linked to Heart experienced massive price gains.
According to CoinGecko data, HEX gained over 77% in the past 24 hours, trading at $0.003979. Meanwhile, PulseChain rose more than 65% to approximately $0.01575 at press time.
Today’s edition of the weekly recap covers a legal setback in the Heart case, an upcoming White House crypto summit, and the Trump family’s planned metaverse expansion. Meanwhile, MetaMask adds Bitcoin and Solana support.
Judge dismisses case against HEX founder U.S. District Judge Carol Bagley Amon has dismissed the SEC’s lawsuit against Hex founder Richard Heart. Heart, who also founded PulseChain and Pulsex, was accused of raising over $1 billion through unregistered cryptocurrency offerings and defrauding investors out of $12.1 million to purchase luxuries (i.e. the largest black diamond). The judge ruled that there was insufficient connection between Heart’s alleged conduct and the U.S. Heart, a U.S. citizen, resides in Finland, where he was accused of tax evasion and assault. Trump to host White House crypto summit President Donald Trump will host a cryptocurrency summit on March 7, featuring industry leaders and administration officials. The event will be coordinated by crypto and AI czar David Sacks and Bo Hines, executive director of the digital assets working group. Trump family explores metaverse A recent trademark application shows the Trump (TRUMP) family’s intention to develop a TRUMP-branded metaverse. This expands their cryptocurrency ventures beyond meme coins and NFTs. The U.S. Patent and Trademark Office filing was submitted on an “intent to use” basis. MetaMask plans Bitcoin and Solana integration The popular cryptocurrency wallet will add native support for Bitcoin (BTC) and Solana (SOL) ecosystems this year. This will eliminate the need for users to manage multiple wallets or use wrapped tokens. Full Bitcoin support is scheduled for the third quarter of 2025, while Solana integration is targeted for May. Bybit hackers move stolen funds to Bitcoin MetaMask Head of Security Taylor Monahan reported that Bybit hackers have transferred at least 209,384 Ethereum (ETH) (approximately $480 million) to Bitcoin. This is more than half of the estimated 400,000 ETH stolen from the exchange. According to Arkham Intelligence tracking, at least $240 million was laundered using THORchain, with most funds converted to native BTC. North Korea’s Lazarus Group moved another 62,200 ETH ($138 million) on March 1. This leaves them with just 156,500 Ethereum remaining from the original theft, according to an analysis by crypto researcher EmberCN. SEC agrees to drop Consensys lawsuit The SEC agreed to dismiss its lawsuit against Consensys, the developer of MetaMask, which had alleged securities law violations. According to Ethereum co-founder and Consensys founder Joseph Lubin, the SEC will file a motion to end the case. In another development, the SEC formally filed to dismiss its case against Coinbase with prejudice on Thursday, confirming the agreement announced last week and ensuring the case cannot be refiled. BitMEX seeks deal The cryptocurrency exchange and derivatives trading platform co-founded by Arthur Hayes in 2014 is exploring potential buyers. BitMEX has faced regulatory challenges since 2020, when it was charged with failing to implement adequate anti-money laundering measures, eventually pleading guilty. Metaplanet seeks additional Bitcoin acquisition funding The Japanese firm is looking to raise 2 billion yen ($13.6 million) through zero-interest ordinary bonds, with proceeds set aside for additional Bitcoin purchases. SEC and Tron request case pause The SEC, the Tron (TRX) Foundation, and Justin Sun filed a joint motion Wednesday asking a federal judge to temporarily halt the regulator’s ongoing legal action. The regulator had initially sued Tron, Sun, and BitTorrent in July 2023, alleging market manipulation, fraud, and issuing unregistered securities. ZachXBT joins Paradigm as security advisor The pseudonymous blockchain investigator has taken a position with research-driven investment firm Paradigm as an incident response advisor to support their portfolio companies. Paradigm cofounder Matt Huang praised ZachXBT’s accomplishments, noting the investigator has helped recover over $350 million for victims of hacks and scams. SEC drops Uniswap investigation The SEC has terminated its investigation into Uniswap Labs, the company behind the decentralized exchange protocol, according to Tuesday’s announcement. Uniswap had received a Wells notice last April indicating the SEC’s intent to bring charges for allegedly operating as an unregistered securities broker and exchange. Strive CEO urges GameStop to adopt Bitcoin reserves Matt Cole, CEO of Strive Asset Management, has formally requested that GameStop consider adopting Bitcoin as a reserve asset. The letter to Chairman and CEO Ryan Cohen suggests Bitcoin adoption could position GameStop as a market leader. Sam Bankman-Fried breaks X silence The former FTX CEO posted publicly for the first time in two years. His Monday evening posts addressed the challenges of firing employees, suggesting terminations often result from company-role mismatches rather than employee shortcomings. OKX affiliate reaches $505 million DOJ settlement Cryptocurrency exchange OKX’s affiliate Aux Cayes FinTech Co. Ltd has agreed to pay over $505 million in penalties after pleading guilty to serving U.S. customers without proper licensing and failing to follow anti-money laundering regulations. The settlement includes a $420.3 million criminal forfeiture and an $84.4 million criminal fine. Strategy completes nearly $2 billion Bitcoin purchase The company formerly known as MicroStrategy has acquired 20,355 Bitcoin at an average price of $97,514 per coin. This marks a total investment of almost $2 billion. Zhao reveals 98.48% portfolio concentration in BNB Binance founder Changpeng Zhao disclosed his cryptocurrency holdings on Binance’s social platform, revealing that BNB (BNB) comprises 98.48% of his portfolio. His remaining assets include a modest 1.32% allocation to Bitcoin, followed by smaller positions in stablecoins EURI (0.17%) and USDT (0.03%). Pump.fun explores automated market maker development The popular Solana-based meme coin launchpad is reportedly testing an in-house automated market maker (AMM) that could replace Raydium as the default decentralized exchange for new tokens.
The US Securities and Exchange Commission (SEC) has agreed to drop its lawsuit against Kraken, marking a major reversal in its approach to crypto enforcement.
This decision comes amid a broader shift. In the past week, the SEC dropped at least six lawsuits and legal actions against crypto firms, including Coinbase and MetaMask.
SEC Vs. Kraken is Finally OverThe lawsuit against Kraken, filed in November 2023, accused the exchange of operating as an unregistered securities exchange, broker, dealer, and clearing agency.
The SEC claimed that Kraken allowed the trading of crypto asset securities without proper registration, depriving investors of necessary protections such as audits, disclosures, and oversight.
Kraken denied the allegations and argued that the SEC had failed to establish clear guidelines on whether digital assets should be classified as securities.
The exchange filed a motion to dismiss the case, citing regulatory uncertainty and a lack of fair notice. A federal judge allowed parts of Kraken’s defense to proceed, but the SEC continued to press its claims.
“The SEC’s decision to dismiss its lawsuit against us (and many others) is more than just a legal victory — it’s a turning point for the future of crypto in the US It ends a wasteful, politically motivated campaign, lifts uncertainty that stifled innovation and investment, and clears the path toward a stable, forward-thinking regulatory regime,” Kraken wrote in its official statement.
The agency’s decision to drop the lawsuit reflects a changing stance on crypto enforcement. Over the past week, it has quietly withdrawn multiple legal actions against major crypto companies.
No More Crypto Enforcement from the SECIn addition to Coinbase and Kraken, the Commission has dropped its probe into Gemini, MetaMask, OpenSea, Tron Foundation, Robinhood, and others. The regulator also saw defeat in a particular crypto case that it actually wanted to pursue.
Over the weekend, the SEC lost a major case against Richard Heart, the founder of HEX and PulseChain.
This shift follows increasing pressure from lawmakers and industry leaders who have criticized the SEC’s aggressive regulatory approach. Although its current Commissioner is against dismissing these legal proceedings, it seems like the organization will no longer pursue aggressive enforcement.
“We beat the SEC! Congratulations to the best legal team in crypto. Fighting – and beating – the SEC was not foretold. Lawyers, lobbyists and everyone in between… We had to earn it,” wrote Marco Santori, Senior Advisor at Kraken.
Kraken’s victory may set a precedent for other crypto firms facing similar lawsuits. The decision to drop these cases signals a possible recalibration of the SEC’s strategy, raising questions about how crypto regulation will evolve in the coming months.
As of now, the Ripple XRP lawsuit is the only major crypto case still active for the Commission. However, given that Donald Trump has included XRP in his US crypto reserve plan, this lawsuit will likely be dropped in the same manner.
Richard Heart, the founder of HEX and PulseChain, allegedly transferred another 11,500 ETH to a new address.
PANews reported on October 26 that according to monitoring by on-chain analyst Aunt Ai, Richard Heart (founder of HEX and PulseChain) transferred another 11,500 ETH to a new address 15 minutes ago and began transferring it to Tornado Cash in batches. Currently, the receiving address has transferred 7,300 ETH, worth US$29.56 million.
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A senior Iraqi oil ministry official said that if OPEC quotas are not significantly increased, Iraq will be forced to consider all available options. Sources said Iraqi officials had considered withdrawing from OPEC, but the current plan is to remain a member and push for higher quotas. (Jinshi)
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Kepler Cheuvreux raises ASML’s European share price target from €1,460 to €1,830.
Kepler Cheuvreux has raised the target price for ASML’s European shares from €1,460 to €1,830.
4 minutes ago
Stifel: U.S. economy in "overheated expansion" as AI investment cycle outweighs consumer pressure
U.S. large diversified financial services holding company Stifel has raised its year-end S&P 500 target and rolled out a stock allocation framework for a "high-growth, high-inflation" environment. The firm lifted its year-end S&P 500 target to 7,800 points, noting the U.S. economy is entering a "running hot" state—where economic growth is strengthening alongside mounting inflationary pressure. Stifel’s models show U.S. growth momentum is picking up while inflation momentum is clearly overheating, a trend that will reshape the market’s leading sector structure in the second half of the year. Instead of traditional consumer sectors, Stifel’s top picks are investment-led cyclical industries, including banks, transportation, materials, energy, semiconductors, software and equipment. The firm adds that fixed-asset investment in AI remains on the rise: large tech firms including Amazon, Microsoft, Meta and Google are projected to combine for roughly $725 billion in total capital expenditures in 2026, some $100 billion higher than prior estimates. This means the AI investment chain is likely to continue outperforming the consumption chain squeezed by inflation. Stifel advises investors to reduce exposure to discretionary consumer, consumer staples, communication services and some financial services sectors, as these areas see weaker earnings revisions. Conversely, the firm favors cyclical value stocks and hedges with defensive value sectors such as insurance, autos, energy and banks.
Richard Heart has transferred a total of 30,066 ETH, equivalent to approximately $125 million, to a new wallet.
PANews reported on October 27th that, according to Onchain Lens monitoring, Richard Heart (founder of HEX and PulseChain) has transferred a total of 30,066 ETH (worth $125.09 million) to a new wallet. Of this, 29,804 ETH (worth $124 million) was transferred via TornadoCash.
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A-shares close: ChiNext rebounds with volume up 2.84%, over 4200 stocks decline across the market
Jefferies: Samsung is likely to follow SK Hynix’s example to list in the US via ADRs.
Jeff Kim, Head of Research at Jefferies, said Samsung is likely to follow SK Hynix in listing on the U.S. market via American Depositary Receipts (ADRs), which will boost the share price of the South Korean chipmaker whose valuation lags behind Micron. "Chip stocks are at a turning point. ADRs will serve as an important catalyst to drive their valuations," he added.
4 minutes ago
UBS and TD Cowen sharply raise Arm’s target price, betting on a revaluation of Arm’s AI data center CPU value.
Arm’s stock price pulled back this week alongside the high-valuation AI sector, though some Wall Street analysts say the correction does not alter the company’s long-term standing in AI data centers. UBS sharply raised Arm’s price target from $260 to $470, retaining its Buy rating; TD Cowen lifted its target from $265 to $475, also keeping a Buy recommendation. Both firms share the view that as agentic AI evolves, CPUs could gain greater importance in data center architectures, rather than GPUs continuing to monopolize the investment narrative. TD Cowen believes that over the long term, CPUs could hold a more strategic position in certain AI workloads. UBS, meanwhile, emphasizes that the real debate in the market centers on the revenue potential of Arm’s self-developed or independent CPU business. The bank projects Arm’s CPU-related revenue could reach around $14 billion by 2030, though the company itself has stated this business will not have a material impact on its finances until fiscal 2028. Arm’s strengths lie in low latency and energy efficiency—metrics that major cloud providers are increasingly prioritizing as they expand AI infrastructure. Even with its stock pulling back from recent highs in the short term, analysts still view Arm as one of the key beneficiaries of the server CPU upgrade cycle.
4 minutes ago
Crypto whale who profited over $23.77 million from BAT ICO liquidates 27,586 ETH
According to monitoring by Yu Jing, a whale that earned $23.77 million from participating in the BAT ICO sold 15,000 ETH (valued at roughly $24.29 million) two hours ago. The whale has now fully liquidated all 27,586 ETH it received from selling 35 million BAT on-chain over the past day and a half, converting the proceeds into 44.836 million USDS at an average selling price of $1,625.
4 minutes ago
Sources: Iraqi officials once considered withdrawing from OPEC, but current plans are to remain a member and pursue a higher quota.
A senior Iraqi oil ministry official said that if OPEC quotas are not significantly increased, Iraq will be forced to consider all available options. Sources said Iraqi officials had considered withdrawing from OPEC, but the current plan is to remain a member and push for higher quotas. (Jinshi)
4 minutes ago
Kepler Cheuvreux raises ASML’s European share price target from €1,460 to €1,830.
Kepler Cheuvreux has raised the target price for ASML’s European shares from €1,460 to €1,830.
4 minutes ago
Stifel: U.S. economy in "overheated expansion" as AI investment cycle outweighs consumer pressure
U.S. large diversified financial services holding company Stifel has raised its year-end S&P 500 target and rolled out a stock allocation framework for a "high-growth, high-inflation" environment. The firm lifted its year-end S&P 500 target to 7,800 points, noting the U.S. economy is entering a "running hot" state—where economic growth is strengthening alongside mounting inflationary pressure. Stifel’s models show U.S. growth momentum is picking up while inflation momentum is clearly overheating, a trend that will reshape the market’s leading sector structure in the second half of the year. Instead of traditional consumer sectors, Stifel’s top picks are investment-led cyclical industries, including banks, transportation, materials, energy, semiconductors, software and equipment. The firm adds that fixed-asset investment in AI remains on the rise: large tech firms including Amazon, Microsoft, Meta and Google are projected to combine for roughly $725 billion in total capital expenditures in 2026, some $100 billion higher than prior estimates. This means the AI investment chain is likely to continue outperforming the consumption chain squeezed by inflation. Stifel advises investors to reduce exposure to discretionary consumer, consumer staples, communication services and some financial services sectors, as these areas see weaker earnings revisions. Conversely, the firm favors cyclical value stocks and hedges with defensive value sectors such as insurance, autos, energy and banks.
The founder of HEX is suspected of transferring another 47,000 ETH to Tornado Cash, worth over $150 million.
PANews reported on November 5th that, according to AiYi, Richard Heart, the founder of HEX and PulseChain, has again transferred 47,200 ETH (approximately $151 million) to the mixing protocol Tornado Cash through four addresses. These addresses currently hold approximately 63,423 ETH, worth about $204 million.
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A-shares close: ChiNext rebounds with volume up 2.84%, over 4200 stocks decline across the market
PANews reported on November 7th that, according to Lookonchain, three new addresses withdrew 4,920 ETH (approximately $16.25 million) from Tornado.Cash and sold it at a price of approximately $3,302. Lookonchain stated that Richard Heart (founder of HEX, PulseChain, and PulseX) purchased 162,937 ETH (approximately $619 million) this year at approximately $3,800 and deposited it all into Tornado.Cash two days ago; it is currently unclear whether the aforementioned sell-off is related to him or was the work of a hacker.
Binance.US and an affiliated cryptocurrency website are off the hook, for now, in a proposed class action alleging they suppressed the ranking of a digital asset that could hurt their business.
The companies were back in the US District Court for the District of Arizona after they failed to get US Supreme Court review of their jurisdictional arguments for dismissal. District court judge Susan M. Brnovich agreed with their new argument that the HEX token holder leading the suit, Ryan Cox, failed to state a claim.
Brnovich gave Cox a chance to refile his suit, which targets two entities associated ...
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