Former Bank Exec Gets 24 Years In Prison After Stealing $47M For A Crypto Fraud To 'Unlock' Returns In A 'Pig Butchering' Scam

Ananya Gairola

August 24, 2024

Former bank CEO from Kansas, Shan Hanes, has been sentenced to 24 years in prison for his involvement in a $47.1 million crypto scam related to pig butchering.

What Happened: Hanes, the former CEO of Heartland Tri-State Bank, was convicted of embezzlement. He diverted the bank’s funds into crypto accounts controlled by scammers, leading to the bank’s collapse, reported NBC News.

Hanes was caught up in a pig butchering scam, where he purchased crypto to allegedly unlock returns on his investments, which he never received.

See Also: Amid Heated Trump-Harris Battle, Crypto Industry Pours ‘Unprecedented’ $119M Into 2024 Elections – Here Are The Biggest Donors

Between May and June 2023, Hanes made 11 wire transfers using the stolen bank funds. He also embezzled money from a local church, an investment club, and his daughter’s college savings account.

The Heartland Tri-State Bank, insured by the FDIC, was one of the five banks to close in 2023.

US Attorney Kate E. Brubacher commented, “Hanes’ greed knew no bounds. He trespassed his professional obligations, his personal relationships, and federal law.”

"Not only did Shan Hanes betray Heartland Bank and its investors, but his illegal schemes also jeopardized confidence in financial institutions," Brubacher said.

Why It Matters: Pig butchering scams have seen a significant rise in recent years, with victims worldwide losing over $75 billion, reported Time in February, citing a study.

These scams typically involve the scammer forming a relationship with the victim, often romantic, before enticing them into making a series of crypto investments.

The sentencing of Hanes comes amidst a surge in crypto scams. Earlier in August, the Securities and Exchange Commission (SEC) filed charges against NovaTech Ltd. for defrauding over 200,000 investors worldwide of more than $650 million in crypto assets.

Previously, the Federal Bureau of Investigation (FBI) also issued an alert on the rising trend of scammers impersonating cryptocurrency exchange employees to defraud unsuspecting victims.

Read Next:

Bitcoin Breaks $61,000, Ethereum, Dogecoin Follow Up, As Kamala Harris Reportedly ‘Supports Policies To Expand Crypto Industry’

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Photo courtesy: Open Clipart

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