A federal judge has ordered that millions of dollars seized from a failed Kansas bank be shared among investors who lost money due to a cryptocurrency scheme. The scheme led to the downfall of Heartland Tri-State Bank, which lost about $9 million after its CEO, Shan Hanes, 53, initiated unauthorized wire transfers to a cryptocurrency wallet. In August 2024, Hanes was sentenced to nearly 25 years in prison for embezzlement.
The FBI recovered $8 million related to the fraud. The U.S. Attorney’s Office in Kansas expressed gratitude for the FBI’s work, stating that this recovery and Hanes’ conviction bring some justice to the victims. Several federal agencies, including the FDIC and the Federal Reserve, were involved in investigating the case. Assistant U.S. Attorney Aaron Smith led the prosecution.