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Former CEO of a regional bank in the United States was sentenced to 24 years in prison for embezzling $47.1 million and participating in a crypto scam

Former CEO of a regional bank in the United States was sentenced to 24 years in prison for embezzling $47.1 million and participating in a crypto scam

CointimeCointime2024/08/20 03:27
By:Cointime

On August 20th, it was reported that the former CEO of a bank in Kansas, USA, was sentenced to 293 months (approximately 24 years and 5 months) in prison for embezzling a large amount of funds and participating in a cryptocurrency fraud scheme. According to court documents, 53-year-old Shan Hanes admitted to the charge of embezzlement of public funds by a bank executive. During his tenure as CEO of Heartland Tri-State Bank, Hanes conducted 11 wire transfers totaling $47.1 million from May to July 2023, transferring the funds to a cryptocurrency wallet and participating in the so-called "Ponzi scheme".

These funds eventually flowed into multiple cryptocurrency accounts controlled by an unidentified third party. As the bank was protected by the Federal Deposit Insurance Corporation (FDIC), the FDIC suffered a loss of $47.1 million.

Hanes' fraudulent behavior led to the collapse of Heartland Tri-State Bank, causing investors to lose $9 million. The US Department of Justice stated that Hanes' actions not only betrayed the bank and investors, but also endangered people's confidence in financial institutions. The case was jointly investigated by multiple agencies including the Federal Bureau of Investigation (FBI) and the FDIC Inspector General's Office.

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