Former CEO pleads guilty after losing Kansas bank’s $47m in crypto scheme

Former CEO pleads guilty after losing Kansas bank’s $47m in crypto scheme
Kansas bank collapses after CEO embezzles millions. Credit: Shutterstock / Shutterstock AI Generator
  • Former bank CEO pleaded guilty to embezzling $47m.
  • Kansas bank collapsed after funds were stolen.
  • Former executive faces 30 years in prison.

The former CEO of Heartland Tri-State Bank in Elkhart, Kansas, pleaded guilty to using his position to embezzle millions of dollars and causing the bank to fail, according to a news release from the US Attorney’s Office, District of Kansas.

Court documents show that Shan Hanes, 52, of Elkhart, pleaded guilty to one count of embezzlement by a bank officer.

From May 2023 to July 2023 Hanes sent 10 wire transfers totaling $47.1 million of Heartland’s funds to a crypto wallet.

The funds were transferred to multiple crypto accounts controlled by unidentified third parties.

“Shan Hanes is a liar and a master manipulator who caused Heartland Tri-State Bank to collapse. Even as he was squandering away tens of millions of dollars in cryptocurrency, Hanes orchestrated schemes to cover his tracks concerning the losses at the bank,” said US Attorney Kate Brubacher.

She added: “Many victims will never fully recoup losses to their life savings and retirement funds, but at least we at the Department of Justice can see that Hanes is held criminally responsible for his actions.”

Hanes is scheduled to be sentenced on August 8 and faces a maximum of 30 years in prison.