According to TechFlow, the former CEO of a bank in Kansas, USA, was sentenced to 293 months in prison for embezzling huge amounts of money to participate in a cryptocurrency scam. Shan Hanes, 53, pleaded guilty to a charge of embezzlement by a bank executive. While serving as CEO of Heartland Tri-State Bank, Hanes made 11 wire transfers totaling $47.1 million between May and July 2023, transferring funds to a cryptocurrency wallet and participating in the so-called "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 took the $47.1 million loss.
Hanes' fraud led to the collapse of Heartland Tri-State Bank and investors lost $9 million. The U.S. Department of Justice said Hanes' actions not only betrayed banks and investors, but also endangered people's confidence in financial institutions. The case was jointly investigated by the Federal Bureau of Investigation (FBI), the FDIC Office of Inspector General and other agencies.