The market cap of HEX plummeted by $246 million this week after its founder, Richard Schueler (known as Richard Heart), was detained in Istanbul on October 14. Turkish authorities seized $7.15 million in cash, firearms, and other assets during a raid. The seizure included nine luxury vehicles, 28 watches, 300 bags, and 19 graphics cards registered to Schueler’s wife. Turkish media has dubbed Schueler “Whale James” and linked him to a $1 billion unregistered securities offering in the US, though that case was dismissed in February 2025.
Images circulating in Turkish media show Schueler in a state of surprise, with the bottom half of his body blurred out, sparking widespread amusement on social media. Eric Wall, a vocal critic of HEX, initially thought the image was AI-generated but now believes it is authentic. Hex supporters claim authorities have not confirmed whether Schueler has been formally arrested or charged.
Ledger introduced a new device, Atom, priced at $849, designed to prevent tampering after a recent incident where wallets sold through an Asian reseller contained malicious implants. Atom, expected to launch in summer 2027, will support AI agent approvals, encrypted messaging, and post-quantum cryptography. Meanwhile, a public feud erupted between Ledger CEO Pascal Gauthier and former Mt Gox CEO Mark Karpeles over Ledger’s handling of the tampering issue.
Starknet is voting on whether to transform itself from an Ethereum L2 into a post-quantum L1, as fears grow that AI could break elliptic curve cryptography before QDay arrives. Over 99% of votes cast so far support the move, though Starknet’s token has lost nearly 50% in value this week. Google’s new quantum error reduction technique and Theta Labs’ quantum circuits have heightened concerns about the urgency of quantum-proofing crypto.
Standard Chartered pushed its $2 trillion stablecoin forecast to 2030, citing stalled market growth but increasing transaction activity. The European Banking Authority classified Circle’s USDC stablecoin as a significant e-money token under the MiCA framework. Meanwhile, Binance.US is seeking a $1 billion valuation in a potential $100 million funding round.