Former bank CEO sentenced to 24 years for $47M crypto fraud

The former CEO of Heartland Tri-State Bank, Shan Hanes, has been sentenced to over 24 years in prison for embezzling more than $47 million in a fraudulent cryptocurrency scheme that led to the collapse of the bank.  

Hanes used his position to carry out the scheme between May and July 2023, directing 11 wire transfers into cryptocurrency wallets linked to a "pig butchering" scam.  

This type of scam involves convincing victims to invest in fake cryptocurrency opportunities, only to steal their money.  

The fraudulent activities resulted in a $9 million loss for investors and a $47.1 million loss that had to be covered by the Federal Deposit Insurance Corporation (FDIC).  

Hanes' actions not only led to the collapse of Heartland Tri-State Bank but also severely damaged the trust placed in him by the community and the bank's investors.  

Special Agent in Charge Justin R. Bundy highlighted the severity of Hanes' crimes, noting that his greed and involvement in the scheme directly contributed to the bank's failure.  

The funds embezzled by Hanes were transferred to multiple cryptocurrency accounts controlled by unknown third parties, making it difficult to trace and recover the stolen money.  

Hanes' sentencing was seen as a significant action to reinforce the importance of integrity in the financial sector.  

U.S. Attorney Kate E. Brubacher emphasized that Hanes not only betrayed the bank and its investors but also undermined confidence in the broader financial system.  

The case serves as a stark reminder of the potential dangers of fraudulent schemes within the banking industry and the severe consequences for those who exploit their positions for personal gain.