Shan Hanes, the former CEO of Heartland Tri-State Bank in Kansas, has been sentenced to 24 years in prison for embezzling $47 million as part of a cryptocurrency fraud scheme known as “pig butchering.”
This scheme involved luring victims into investing under false pretense, ultimately leading to the bank’s collapse.
Hanes orchestrated a series of wire transfers between May and July 2023, diverting funds into crypto wallets controlled by scammers.
Despite initially using personal funds for crypto investments, he resorted to embezzling from the bank, a local church, and an investment club to sustain his losses.
The Federal Deposit Insurance Corporation (FDIC) absorbed the financial fallout, but investors lost approximately $9 million.
U.S. Attorney Kate Brubacher emphasized the betrayal of trust and the need for accountability in financial institutions.
Hanes’s actions reflect a broader trend of increasing crypto-related fraud, underscoring the importance of stringent oversight in the evolving digital asset landscape. He faces additional charges in state court, with a trial scheduled for October.