TechFlow news — On November 7, according to Protos, Shan Hanes, former CEO of U.S.-based Heartland Tri-State Bank, was sentenced to 24 years and 5 months in prison for financial fraud. Tether froze the related funds through its blacklisting mechanism, preventing bank shareholders from suffering total equity loss.
Hanes is accused of transferring over $47 million into "pig-butchering" scams. Court documents show that Hanes relinquished ownership of funds held in an Ethereum address managed by Tether Limited. Tether promptly blacklisted the address, freezing its transaction capabilities and effectively protecting investors' interests.
On November 6, Judge John W. Broomes informed all shareholders that they would receive full compensation for their investments. The Federal Deposit Insurance Corporation (FDIC) has already provided full protection for the bank’s depositors. Tether’s move to freeze the address may be part of its collaboration with the U.S. Federal Bureau of Investigation.
