The former CEO of Kansas-based Heartland Tri-State Bank, Shan Hanes, has been sentenced to 24 years in prison for his involvement in a large-scale cryptocurrency fraud scheme.
Shan Hanes Case
Hanes, hailing from Elkhart, Kansas, pleaded guilty to one count of embezzlement. He admitted to misappropriating tens of millions of dollars in cryptocurrency.
Fraud Schemes
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.
Prosecutor's Position
U.S. Attorney Kate E. Brubacher emphasized 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.
This case is also in line with recent crackdowns on crypto-related crimes, such as the conviction of Remy St. Felix, who was found guilty by a federal jury of orchestrating violent home invasions to steal digital assets.
Comments