Cryptocurrency development has brought billions of people into trading. However, it has also brought thousands of cases of crypto fraud because of lacking crypto regulations. And this is what this former Kansas Bank CEO has done. However, the jurisdiction arrived into the picture on time, sentencing the ex-CEO, Shan Hanes to 24 years in prison.
With more and more banks collapsing, the US’s economic state is getting worse. Some of these banks went down for a valid reason, but many, with fraud and theft and more to come in the future. Earlier, FDIC said 63 banks faced collapse as they had more than $517 billion in unclear losses in the first quarter of the year itself. With that, the users are shocked to the core, fearing for the safety of their funds.
Who Is Shan Hanes, The Former Kansas Bank CEO?
Shan Hanes is the former CEO and President of Heartland Tri-state Bank in Elkhart, Southwest Kansas. He was known as a notable figure until his bank fraud came to attention. Born in 1971, this 53-year-old ex-CEO has been working in the banking industry for three decades, including buying his bank. His banking career started in 1993 when he joined the position of AG Loan Officer and IT officer with the First National Bank of Elkhart. By 2008, he was promoted to the CEO/ President position. And by 2011, he had officially bought the bank and made it worth $130 Million in the next few years.
Shan Hanes Stole $47 Million In Crypto Fraud
The story of the theft started in May 2023, and by June 2023, the bank CEO had stolen Millions of users’ funds. Hanes took advantage of his position as the Bank CEO, making 11 unauthorized bank transfers into crypto wallets, snatching $47.1 Million of regional money. However, there is more to the story. These crypto wallets were linked to pig butchering scams, snatching all the money into crypto frauds and scams. This led to the collapse of the Bank due to insufficient funds. The loss was later covered by the Federal Deposit Insurance Corporation, which took over and reopened the bank as Dream First Bank. However, investors still had to bear the loss of $9 Million from this situation.
It was May when Shan pleaded guilty to one embezzlement charge to a bank officer and was booked for fraud and theft at the beginning of the year. And in recent, the Justice Department sentenced Shan Hanes to 24 years and 5 months (293 Months) of time in prison, followed by three years of supervised release per U.S. Attorney’s Office, District of Kansas. However, a fine has not been imposed to ensure restitution to the victims of the bank’s collapse.
Final Thoughts
After three decades in the banking sector, Shan Hanes has made a decent image in the community. However, the trust was shattered when he stole the $47.1 Million community’s money in 2023. The former Kansas Bank CEO has pleaded guilty earlier and is now up for a sentence of 24.5 years. Despite that, the victims, which were local to the area have endured a heavy loss of $9 Million. However, the court imposed no fines on Hanes other than imprisonment to cover their losses first. Many of them gathered at the hearing to show their disappointment on Hanes.
The post Who Is Shan Hanes? Former Kansas Bank CEO Sentenced To 24 Years in Prison for Crypto Fraud appeared first on CoinGape.
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