Bank

<a href="https://bitcoinworld.co.in/former-bank-ceo-shan-hanes-sentenced-to-24-years-for-crypto-fraud/" title="Former Bank CEO, Shan Hanes, Sentenced To 24 Years For Crypto Fraud" rel="noopener noreferrer nofollow"></a>
Shan Hanes, the former CEO of Heartland Tri-State Bank (HTSB), has been implicated in a major fraud scheme involving crypto, resulting in the bank’s collapse.
Hanes transferred $47.1 million from the bank into a cryptocurrency operation, which ultimately led to its failure. Despite the Federal Deposit Insurance Corporation (FDIC) covering the losses, Hanes now faces a prison sentence of nearly 24 years.
Hanes <a href="https://www.justice.gov/usao-ks/pr/former-ceo-failed-bank-sentenced-prison" rel="noopener noreferrer nofollow">admitted</a> to embezzling funds between May and July 2023, executing 11 wire transfers that funneled $47.1 million into a crypto wallet.
His fraudulent activity, known as a “pig butchering” scheme, resulted in a complete loss of the bank’s equity, though the FDIC managed to recover the lost amount, investors ended up losing $9 million.
The Department of Justice criticized Hanes for betraying his role and undermining trust in financial institutions. Hanes has been sentenced to 293 months in prison, with a separate hearing scheduled to determine the financial penalties.
FBI Special Agent Stephen Cyrus described Hanes’ scheme as a classic case of “pig butchering,” emphasizing that Hanes’ duty was to protect bank customers, not exploit them.
Pig butchering scams have seen a resurgence, with the FBI’s 2023 Internet Crime Report highlighting a 38% increase in investment fraud losses, totaling around $4 billion in crypto-related scams.

Former Bank CEO, Shan Hanes, Sentenced To 24 Years For Crypto Fraud

ItsBitcoinWorld

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