The former CEO of HTSB Bank in Kansas, USA, was sentenced to more than 24 years in prison for embezzling $47.1 million to participate in a crypto scam that led to the bank's collapse

According to an official announcement from the U.S. Department of Justice, the former CEO of a Kansas bank was sentenced to 293 months (about 24 years and 5 months) in prison for embezzling huge amounts of money to participate in a cryptocurrency scam and causing the bank to collapse. Court documents show that 53-year-old Shan Hanes pleaded guilty to one count of embezzlement by a bank executive. While serving as CEO of Heartland Tri-State Bank (HTSB), Hanes made 11 wire transfers totaling $47.1 million between May and July 2023, transferring funds to a cryptocurrency wallet and participating in a cryptocurrency pig-killing scam. The funds eventually flowed into multiple cryptocurrency accounts controlled by unidentified third parties. Since the bank is protected by the Federal Deposit Insurance Corporation (FDIC), the FDIC assumed a loss of $47.1 million. Hanes' fraud led to the collapse of Heartland Tri-State Bank and investors lost $9 million. A federal judge ordered the finalization of compensation at a separate hearing within the next 90 days. The U.S. Department of Justice said that Hanes' actions not only betrayed banks and investors, but also endangered people's confidence in financial institutions. The case was jointly investigated by multiple agencies including the Federal Bureau of Investigation (FBI) and the FDIC Inspector General's Office.