TechFlow reports that the former CEO of a bank in Kansas, USA, has been sentenced to 293 months—approximately 24 years and 5 months—in prison for misappropriating substantial funds in a cryptocurrency scam. According to court documents, 53-year-old Shan Hanes pleaded guilty to one count of bank executive embezzlement. While serving as CEO of Heartland Tri-State Bank, Hanes executed 11 wire transfers between May and July 2023, totaling $47.1 million, which were sent into a cryptocurrency wallet involved in a so-called "pig-butchering" scam.
The funds ultimately flowed into multiple cryptocurrency accounts controlled by unidentified third parties. Since the bank was insured by the Federal Deposit Insurance Corporation (FDIC), the FDIC absorbed the $47.1 million loss.
Hanes' fraudulent actions led to the collapse of Heartland Tri-State Bank and caused investors to lose $9 million. The U.S. Department of Justice stated that Hanes not only betrayed the bank and its investors but also undermined public confidence in financial institutions. The case was jointly investigated by the FBI, the Office of the Inspector General of the FDIC, and other agencies.
