The former CEO of the now-defunct Kansas-based Heartland Tri-State Bank, Shan Hanes, has been sentenced to 24 years in prison for his role in a large-scale cryptocurrency fraud scheme.
Hanes, who hails from Elkhart, Kansas, pleaded guilty to one count of embezzlement, admitting to misappropriating tens of millions of dollars in cryptocurrency.
According to the U.S. Attorney’s Office for the District of Kansas, Hanes used his position at the bank to orchestrate the fraud, which involved creating 11 wire transfers of the bank’s funds between May and July 2023. The total amount embezzled reached $47.1 million and was allegedly transferred to several cryptocurrency wallets controlled by unidentified third parties.
Hanes’s crypto fraud scheme was described as a form of “pig butchering,” a deceptive practice in which victims are manipulated into making large financial transfers. This scheme ultimately led to the collapse of Heartland Tri-State Bank, causing a total loss of equity for its investors.
U.S. Attorney Kate E. Brubacher emphasised that the 24-year sentence serves as “a measure of justice for the victims.” She also highlighted that the ruling underscores the U.S. Department of Justice’s commitment to holding individuals accountable when they exploit positions of trust for personal gain.
In line with recent crackdowns on crypto-related crimes, a federal jury in Greensboro, North Carolina, has convicted 24-year-old Remy St. Felix of West Palm Beach, Florida, for leading violent home invasions aimed at stealing victims’ cryptocurrency. St. Felix was found guilty of nine charges, including conspiracy, kidnapping, robbery, and wire fraud after a trial revealed his role in an international scheme targeting U.S. citizens’ digital assets.
U.S. Attorney Sandra J. Hairston condemned St. Felix and his co-conspirators, stating, “The victims suffered a terrible ordeal that no one should have to endure,” as she emphasised the callousness and greed behind their actions.
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