The former CEO of a regional bank in the United States was sentenced to 24 years in prison for embezzling $47.1 million to participate in a cryptocurrency scam

ChainCatcher News: The former CEO of a bank in Kansas, USA, has been sentenced to 293 months (approximately 24 years and 5 months) in prison for embezzling large sums of money to participate in a cryptocurrency scam. According to court documents, 53-year-old Shan Hanes pleaded guilty to one count of bank executive embezzlement. While serving as the CEO of Heartland Tri-State Bank, Hanes executed 11 wire transfers totaling $47.1 million between May and July 2023, transferring funds into a cryptocurrency wallet and participating in a so-called "pig butchering" scam.

These funds ultimately flowed into multiple cryptocurrency accounts controlled by unidentified third parties. Since the bank was insured by the Federal Deposit Insurance Corporation (FDIC), the FDIC absorbed the $47.1 million loss.

Hanes's fraudulent activities led to the closure of Heartland Tri-State Bank, resulting in a $9 million loss for investors. The U.S. Department of Justice stated that Hanes's actions not only betrayed the bank and its investors but also jeopardized public confidence in financial institutions. The case was jointly investigated by multiple agencies, including the Federal Bureau of Investigation (FBI) and the FDIC Office of Inspector General.