Highlights:
- The FBI recovered $8.3 million in the Kansas bank crypto scam, returning funds to 30 victims by the CEO’s embezzlement scam.
- Ex CEO Shan Hanes embezzled $47.1 million to fund a crypto scam, leading to Heartland Tri-State Bank’s collapse.
- A federal judge ordered that the recovered funds be distributed to victims, including local shareholders.
The FBI has recovered $8.3 million for victims of the Kansas bank crypto scam. Former Heartland Tri-State Bank CEO Shan Hanes embezzled millions, causing the bank to collapse. On Monday, a federal judge ruled that the recovered funds will be distributed to 30 investors. The victims believed these were their life savings. The funds were held in a Tether account in the Cayman Islands.
Advertisement
📢JUST IN: FBI RECOVERS $8.3M IN STOLEN FUNDS IN CRYPTO EMBEZZLEMENT CASE INVOLVING KANSAS BANK CEO
— BSCN Headlines (@BSCNheadlines) November 5, 2024
Embezzlement Leads to Bank Collapse
In August, Hanes, 53, was sentenced to more than 24 years in prison. He pleaded guilty to embezzlement by a bank officer and diverted approximately $47.1 million from customer accounts from June to July 2023. He also made 11 wire transfers to cryptocurrency wallets controlled by scammers.
Hanes believed that he was engaging in a reputable cryptocurrency opportunity. However, he became a victim of a ‘pig butchering scam.’ his type of fraud includes criminals gradually gaining confidence. They entice victims to make significant investments, which subsequently disappear.
Victims Receive Long-Awaited Relief
The collapse of Heartland Tri-State Bank affected many investors, who had a huge percentage of their savings and retirement benefits wiped out. Savings and loan associations insured and paid consumers by the FDIU to the amount of $47.1 million. But 30 shareholders suffered a loss of $8.3 million.
On Monday, victims expressed relief upon learning the compensation plan. “I just can’t describe the weight lifted off us.” Bart Camilli, a 70-year-old investor, exclaimed. He will receive about $450,000. “I can breathe,” said another victim, Margaret Grice, who will receive nearly $250,000.
Legal Proceeding and Future Consequences
During the sentencing, Hanes apologized, saying that he never planned for any harm to occur. He failed to find out why and how he was scammed. Nevertheless, prosecutors claimed that Hanes went one step further by embezzling customers’ money and breaking banking laws.
Because of his social status, Hanes was able to hide all the criminal activities he perpetrated. He was a member of the school board, a local volunteer, and a member of the banking associations. U.S. Attorney Kate E. Brubacher praised the recovery efforts. She noted that the Department of Justice obtained justice after Hane’s conviction and prison term. “Those victims will now be somewhat financially relieved with this court order.”
The FBI’s recovery of the funds is a victory in the fight against cryptocurrency-related fraud. The Kansas bank crypto scam draws attention to the dangers of cryptocurrency schemes. Hanes could be in his late 70s upon release. He is unlikely to pay back the $47.1 million still owing to the FDIC.
Pig Butchering Scams on the Rise
According to the court documents, Hanes began investing by the end of 2022. He received a message through the WhatsApp application from a person who claimed to be an investment advisor. At first, he invested $5,000. Later, he started transferring large amounts, such as $40,000 from his church and $60,000 from his daughter’s college fund.
By mid-2023, he had begun siphoning millions from their accounts to try to make the money and profits back. Those who fell victim to the Kansas bank crypto scam can smile again since they got their hard-earned money back. The case emphasizes the significance of regulatory supervision and raising awareness about cryptocurrency scams.
The FBI continues to combat such schemes, which have been proliferating and often target unsuspecting individuals. Investors should exercise caution by verifying legitimate cryptocurrency opportunities. Hanes was both a victim and perpetrator in the Kansas bank crypto scam victim. His actions violated trust and law and the recovery of funds brings closure to many affected by his actions.
Advertisement
