The HEX token experienced a sharp decline after Turkish authorities announced the detention of its creator, Richard Schueler, in Istanbul.
Market reaction
Within a 24-hour window, HEX lost close to 30% of its value, settling around $0.0006. Market-capitalisation contracted by about $160 million, falling from just over $500 million to roughly $340 million, according to data aggregators. The token’s price had previously peaked at $0.44 in September 2021, making the current level a stark reversal.
Legal background
Local outlet Ihlas Haber Ajansı reported that police seized several items from Schueler and his spouse, including electronic devices, hardware wallets, jewellery and firearms. The arrest follows a two-year-old Interpol Red Notice that listed Schueler for alleged tax fraud and assault, with Finnish investigators still seeking his custody. Finland’s national bureau declined to comment on the recent developments.
Schueler also appears on Europe’s most-wanted list for an alleged assault on a 16-year-old, involving physical aggression in a stairwell. In the United States, the Securities and Exchange Commission brought a lawsuit in July 2023 accusing him of raising roughly $1 billion through an unregistered securities offering and diverting at least $12 million. A federal judge dismissed the case in February 2025, concluding that the alleged conduct was not primarily directed at U.S. investors, and the SEC announced in April 2025 that it would not pursue a renewed filing.
Potential impact on HEX ecosystem
The sudden price drop may trigger liquidity concerns for investors who entered the market during HEX’s 2021 rally. With the founder’s legal troubles now public, confidence in the project’s leadership could erode, potentially affecting future development and community participation. However, the dismissal of the SEC action removes a regulatory cloud that had lingered over the token, which might temper some downside pressure if the legal situation stabilises.
Why it matters
HEX’s rapid devaluation highlights how legal challenges to a cryptocurrency’s founder can directly influence market dynamics. The episode underscores the broader risk that regulatory and law-enforcement actions pose to high-profile tokens, especially those tied to charismatic personalities. Investors and observers will be watching how the Turkish detention and the unresolved Interpol notice shape HEX’s trajectory and the wider perception of founder-centric projects.
