Former Kansas bank CEO admits to embezzling $47M for crypto scheme
Former Heartland Tri-State Bank CEO Shan Hanes pleaded guilty to embezzling $47 million for a cryptocurrency scheme, facing up to 30 years in prison, a $1 million fine, and $60.5 million restitution.
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The former CEO of Heartland Tri-State Bank in Kansas, Shan Hanes, pleaded guilty to embezzling $47 million for a cryptocurrency scheme that led to the bank's collapse. Hanes faces a maximum of 30 years in prison, a $1 million fine, and up to $60.5 million in restitution. The scheme involved transferring funds to a cryptocurrency wallet after deceiving investors and lying about the purpose of wire transfers. Hanes communicated with an unidentified co-conspirator through WhatsApp and misled bank employees, directors, and investors. The embezzlement caused bank shareholders to lose between $9.3 million and $13.4 million. Hanes fell victim to a "pig butchering" cryptocurrency scam, where scammers promise high returns on fake investments. The Federal Deposit Insurance Corporation took over the bank's assets after it was deemed insolvent by Kansas bank regulators. Hanes admitted guilt and expressed readiness to accept any punishment imposed by the court. The collapse of the bank was described as an isolated event, and the FDIC insured the bank's assets.
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