Former CEO of Heartland Tri-State Bank in Kansas, Shan Hanes, has pleaded guilty to embezzling $47.1 million in a crypto scheme. Hanes orchestrated the scheme to cover the bank’s losses and spent millions of dollars on personal crypto purchases. The bank ultimately failed in July 2023, resulting in a complete loss of equity for investors. The U.S. Attorney’s Office for the District of Kansas stated that Hanes is a “liar and a master manipulator” who caused the bank’s collapse. The FBI, Federal Deposit Insurance Corporation, Federal Reserve Board, and Federal Housing Finance Agency are currently investigating the case. Hanes faces a maximum of 30 years in prison and will be sentenced on August 8. The involvement of failed banks, such as Signature, SVB, and Silvergate, in the crypto sector has raised questions about the relationship between banks and the crypto ecosystem.
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