Former US Bank CEO Sentenced to 293 Months in Prison for Crypto Fraud

Todaysgist, News – The US Department of Justice (DOJ) announced that Shan Hanes, former CEO of Heartland Tri-State Bank (HTSB), was sentenced to 293 months in prison for embezzling millions of dollars in a cryptocurrency scheme.

“(Sentenced to prison) for using his former position as CEO of a bank to embezzle tens of millions of dollars in a cryptocurrency scheme that caused the bank to fail miserably and lose equity to investors,” the DOJ said, as quoted by News.bitcoin.com, Wednesday (8/21/2024).

Hanes’ actions caused Heartland Tri-State Bank to go bankrupt, resulting in losses of up to $9 million (Rp. 139.6 billion) for investors and a loss of $47.1 million (Rp. 730.7 billion) covered by the Federal Deposit Insurance Corporation (FDIC).

“Shan Hanes was sentenced today for his role in a $47.1 million embezzlement scheme that ultimately led to the bankruptcy of Heartland Tri-State Bank,” said Special Agent in Charge Justin R. Bundy.

Hanes pleaded guilty to embezzling $47.1 million from HTSB through 11 wire transfers between May and July 2023, directing the funds to a crypto wallet involved in the fraud scheme.

These schemes typically involve scammers convincing their victims to invest in fake crypto, only to steal their money.

The funds were channeled to multiple cryptocurrency accounts controlled by unknown third parties, making them difficult to trace.

“Hanes, as CEO of Heartland Tri-State Bank, held the trust and confidence of the Elkhart, KS community, but he violated that trust. He attempted to financially gain by embezzling funds from the bank. His idea of ​​getting rich quick was, in reality, a hog slaughter scheme. His involvement in this scheme ultimately led to the bankruptcy of the bank. A bank’s job is to protect its customers and identify fraud, not participate in it,” said Special Agent in Charge of the FBI Kansas City Field Office Stephen Cyrus.

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