Heartland Tri-State Bank CEO Admits Embezzling $47 Million for Cryptocurrency Purchase, Resulting in Bankruptcy

Heartland Tri-State Bank CEO Shan Hanes admitted on Thursday to embezzling $47.1 million for personal cryptocurrency purchases, leading to the bank’s collapse. From May to July 2023, Hanes made at least 10 wire transfers from the Elkhart-based bank to cryptocurrency accounts. The bank’s closure resulted in complete losses for investors. The Kansas State Banking Commission seized the bank, which was later acquired by Dream First Bank. US prosecutor Kate E. Brubacher described Hanes as a “fraudster and master manipulator” who could face up to 30 years in prison. His sentencing is scheduled for August 8, 2024.