Former CEO of a Kansas Bank Pleads Guilty to Embezzling $47M in Cryptocurrency Scheme

Former CEO of Heartland Tri-State Bank in Kansas, Shan Hanes, has pleaded guilty to embezzling $47.1 million in a personal crypto scheme. This resulted in the bank’s collapse and a complete loss of equity for investors. Hanes, who is accused of squandering millions of dollars in cryptocurrency, will face a maximum of 30 years in prison and will be sentenced on August 8. The FBI, Federal Deposit Insurance Corporation, Federal Reserve Board, and Federal Housing Finance Agency are currently investigating the case. The involvement of recently failed banks such as Signature, SVB, and Silvergate in the crypto sector has raised questions about the relationship between banks and the crypto ecosystem.