Former Kansas bank CEO sentenced to 24 years for $47M crypto fraud
Shan Hanes, the former CEO of Heartland Tri-State Bank (HTSB) in Kansas, has been sentenced to 293 months (over 24 years) in federal prison for his role in a $47.1 million cryptocurrency fraud scheme.
Hanes, 53, pleaded guilty to one count of embezzlement by a bank officer, admitting to a series of unauthorised wire transfers that led to the collapse of HTSB.
Between May and July 2023, Hanes executed 11 unauthorised wire transfers, funneling $47.1 million of the bank’s funds into a cryptocurrency wallet as part of a scheme known as "pig butchering."
"Pig butchering" is a scam where unsuspecting investors are lured into fraudulent digital asset investments, resulting in significant financial losses.
The fraud triggered the failure of Heartland Tri-State Bank, with the Federal Deposit Insurance Corporation (FDIC) absorbing the loss and the bank’s investors suffering a $9 million hit.
The FDIC confirmed that the funds were transferred to multiple cryptocurrency accounts controlled by unidentified third parties, making it impossible for the bank to recover its losses.
A separate hearing within the next 90 days will determine the restitution for the victims of Hanes's fraud.
U.S. Attorney Kate E. Brubacher condemned Hanes for his greed, stating that he not only betrayed his professional duties and personal relationships but also violated federal law, ultimately undermining trust in financial institutions.
FBI Special Agent in Charge Stephen Cyrus emphasised that Hanes exploited his trusted position in the Elkhart community for personal gain, leading to the bank’s collapse.
Korey Brinkman, Special Agent-in-Charge of FHFA-OIG’s Central Region, noted the severe breach of trust caused by Hanes's actions, which had significant repercussions for the bank’s customers and its overall stability.
Special Agent Jon Ellwanger added that the sentencing sends a clear message that executives who compromise the integrity of community banks will face justice.
Federal law enforcement, in collaboration with the U.S. Attorney’s Office, ensured that Hanes was held accountable for his crimes, reinforcing the importance of trust and responsibility in the banking sector.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Florida teens arrested in connection with a kidnapping and theft of $4M in crypto
Share link:In this post: Three Florida teens have been accused of kidnapping a man at gunpoint and forcing him to transfer $4 million worth of digital assets to them. The teens kidnapped the victim from Las Vegas and threatened to kill him and his father if he didn’t cooperate. Law enforcement agencies across the globe are now warning individuals with substantial crypto holdings to be cautious amid a rise in kidnappings.
UK icons slam AI ‘theft’ in fiery plea to Starmer before key vote
Share link:In this post: Over 400 UK artists urged PM, Keir Starmer, to strengthen copyright laws ahead of an AI legislation vote. UK government’s proposed “opt-out” rule for AI training on copyrighted content faces strong backlash. Hayao Miyazaki and others condemn AI-generated art, fueling copyright debates and legal challenges.
Americans have wiped out $3 trillion in savings in the past 3 years, mostly from stimulus checks
Share link:In this post: Americans have drained $3 trillion in savings since 2021, with excess savings now at negative $900 billion. The US savings rate dropped to 3.9% in March, below pre-pandemic levels of 5-6%. Consumer spending rose 0.7% in March, but GDP still shrank by 0.3% due to soaring imports.

Banking the unbanked, but this time for real?
Trending news
MoreCrypto prices
More








