World
Ex-Kansas Bank CEO sentenced to 24 years for $47M cryptocurrency fraud
A former Chief Executive Officer of Heartland Tri-State Bank in Kansas, Shan Hanes, has been sentenced to over 24 years in prison for his role in a $47 million cryptocurrency fraud that led to the bank’s collapse.
Hanes, who pleaded guilty to embezzling millions of dollars, was sentenced to 293 months (approximately 24 years) in prison.
The U.S. Attorney for Kansas announced the sentence on August 19, revealing that Hanes had orchestrated a “pig butchering” scheme between May and July 2023.
former Chief Executive Officer of Heartland Tri-State Bank in Kansas, Shan Hanes,
The cryptocurrency fraud involved more than a dozen wire transfers totalling over $47 million from Heartland Tri-State Bank to a cryptocurrency wallet.
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The fraudulent activities severely impacted the bank, leading to its closure and causing a $47.1 million loss, which was absorbed by the Federal Deposit Insurance Corporation (FDIC). The bank’s investors also suffered losses amounting to $9 million.
U.S. Attorney Kate E. Brubacher condemned Hanes’ actions, stating, “Hanes’ greed knew no bounds. He trespassed on his professional obligations, his relationships, and federal law. Not only did Shan Hanes betray Heartland Bank and its investors, but his illegal schemes also jeopardized confidence in financial institutions.”
She added that the sentence serves as a measure of justice for the victims and a warning that the U.S. Department of Justice will hold accountable those who violate positions of trust.
Special Agent Stephen Cyrus of the FBI’s Kansas City Field Office echoed these sentiments, highlighting the betrayal of trust by Hanes.
“Mr. Hanes, as the CEO of Heartland Tri-State Bank, held the trust and confidence of the community of Elkhart, KS, but he violated that trust. His get-rich-quick scheme ultimately led to the bank’s collapse,” Cyrus said.
The term “pig butchering” refers to a long-term cryptocurrency fraud where victims are gradually lured into making increasing contributions, to a fraudulent investment scheme. Hanes’ actions not only destroyed a community bank but also led to significant financial losses for its customers and investors.
