PANews reported on August 20 that according to an announcement from the U.S. Department of Justice, a Kansas man was sentenced to 293 months in prison for using his former position as a bank CEO to embezzle tens of millions of dollars through a cryptocurrency scheme, causing the bank to go bankrupt and investors to lose all their equity.
While serving as CEO of Heartland Tri-State Bank (HTSB) in Elkhart, Kansas, Hanes initiated 11 wire transfers between May and July 2023 to move $47.1 million of Heartland’s funds into cryptocurrency wallets, a cryptocurrency scheme known as “pig-sucking.” The funds were moved to multiple cryptocurrency accounts controlled by unidentified third parties while HTSB was insured by the Federal Deposit Insurance Corporation (FDIC). The FDIC covered the $47.1 million loss. Hanes’ fraud led to the bankruptcy of HTSB and bank investors lost $9 million. A federal judge ordered a separate hearing and final determination of restitution within the next 90 days.