Former Bank CEO Sentenced to 24 Years for Crypto Fraud

Shan Hanes, the former CEO of Heartland Tri-State Bank (HTSB), has been implicated in a major fraud scheme involving cryptocurrency, resulting in the bank's collapse.

Hanes transferred $47.1 million from the bank into a cryptocurrency operation, which ultimately led to its failure. Despite the Federal Deposit Insurance Corporation (FDIC) covering the losses, Hanes now faces a prison sentence of nearly 24 years.

Hanes admitted to embezzling funds between May and July 2023, executing 11 wire transfers that funneled $47.1 million into a crypto wallet.

His fraudulent activity, known as a “pig butchering” scheme, resulted in a complete loss of the bank’s equity, though the FDIC managed to recover the lost amount, investors ended up losing $9 million.

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The Department of Justice criticized Hanes for betraying his role and undermining trust in financial institutions. Hanes has been sentenced to 293 months in prison, with a separate hearing scheduled to determine the financial penalties.

FBI Special Agent Stephen Cyrus described Hanes’ scheme as a classic case of “pig butchering,” emphasizing that Hanes’ duty was to protect bank customers, not exploit them.

Pig butchering scams have seen a resurgence, with the FBI’s 2023 Internet Crime Report highlighting a 38% increase in investment fraud losses, totaling around $4 billion in crypto-related scams.

Alexander Stefanov

With over 8 years of experience in the cryptocurrency and blockchain industry, Alexander is a seasoned content creator and market analyst dedicated to making digital assets more accessible and understandable. He specializes in breaking down complex crypto trends, analyzing market movements, and producing insightful content aimed at educating both newcomers and seasoned investors. Alexander has built a reputation for delivering timely and accurate analysis, while keeping a close eye on regulatory developments, emerging technologies, and macroeconomic trends that shape the future of digital finance. His work is rooted in a passion for innovation and a firm belief that widespread education is key to accelerating global crypto adoption.