A former Kansas bank CEO has been sentenced to more than 24 years in prison for embezzling $47 million in a crypto fraud that led to the bank’s collapse.
Shan Hanes, the former CEO of the now-failed Heartland Tri-State Bank, has been sentenced to 293 months in prison after the court found he embezzled “tens of millions of dollars” in a cryptocurrency scheme that led to the bank’s collapse.
In an article dated August 19 Press releaseThe U.S. Attorney’s Office in Kansas said Hanes, who pleaded guilty to one count of embezzlement by a bank officer, orchestrated more than a dozen wire transfers totaling more than $47 million from Heartland Tri-State Bank to a cryptocurrency wallet between May and July 2023 in a scheme known as a “hog slaughter.”
During that period, the bank was insured by the Federal Deposit Insurance Corporation, which absorbed the $47.1 million loss caused by Hanes’ actions. fraudulent The scheme not only led to the bankruptcy of the bank but also resulted in a loss of $9 million for its investors.
U.S. Attorney Kate E. Brubacher says Hanes “violated his professional obligations” and adds that the sentence is “a measure of justice for the victims and a statement that the U.S. Department of Justice will hold accountable those who violate positions of trust for their own benefit.”
The Hanes case highlights the risks of the cryptocurrency sector, where the pseudo-anonymous nature of blockchain networks can be attractive to those seeking quick and potentially illicit profits. The ruling follows the case of Reginald Fowler, former co-owner of the Minnesota Vikings, who He was also sentenced to six years in prison for running a “shadow bank” within the cryptocurrency industry, involving more than $700 million in unregulated transactions in 2018.
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