According to Odaily, the U.S. Department of Justice has announced that a former CEO of a Kansas bank has been sentenced to 293 months (approximately 24 years and 5 months) in prison for embezzling substantial funds to participate in a cryptocurrency scam, leading to the bank's collapse. Court documents reveal that 53-year-old Shan Hanes admitted to one count of embezzlement by a bank executive. During his tenure as CEO of Heartland Tri-State Bank (HTSB), Hanes conducted 11 wire transfers totaling $47.1 million between May and July 2023, funneling the money into a cryptocurrency wallet to engage in a crypto scam. These funds eventually ended up in multiple cryptocurrency accounts controlled by unidentified third parties. The Federal Deposit Insurance Corporation (FDIC) covered the $47.1 million loss due to the bank's federal insurance protection. Hanes' fraudulent actions led to the collapse of Heartland Tri-State Bank, resulting in a $9 million loss for investors. A federal judge has ordered a separate hearing within the next 90 days to finalize the restitution. The Department of Justice stated that Hanes' actions not only betrayed the bank and its investors but also undermined public confidence in financial institutions. The case was investigated by multiple agencies, including the Federal Bureau of Investigation (FBI) and the FDIC Office of Inspector General.
