A bank exec stole $47 million for a crypto scam, and now he’s going to jail

A Kansas antheral was sentenced to 24 years successful situation aft pouring $47.1 cardinal into a pig butchering scam — utilizing wealth from the slope helium was successful complaint of. Shan Hanes, the erstwhile CEO of the tiny Heartland Tri-State Bank, pleaded guilty to embezzlement aft routing the funds to scammers’ crypto accounts, causing the slope to collapse.

As reported by NBC News, Hanes fell for a pig butchering scam that had him purchasing crypto “to unlock the expected returns connected his investments,” which helium ne'er received.

In caller years, pig butchering scams person go progressively common, with a caller survey showing victims mislaid implicit $75 billion to the ruse globally. Google adjacent sued 2 alleged scammers earlier this twelvemonth implicit accusations they uploaded dozens of apps to the Play Store to transportation retired their schemes.

Pig butchering scams typically impact a scammer uncovering and contacting a unfortunate done a messaging app, a dating service, oregon a societal media platform. They’ll past effort to signifier a narration — often a romanticist 1 — with their unfortunate earlier yet luring them into making a bid of crypto investments.

From May to June 2023, Hanes acceptable up 11 ligament transfers utilizing the bank’s stolen funds. He besides embezzled wealth from a section church, an concern club, and his daughter’s assemblage savings account. The Heartland Tri-State Bank, which was insured by the FDIC astatine the time, was 1 of the five banks to adjacent successful 2023.

“Hanes’ greed knew nary bounds,” US Attorney Kate E. Brubacher says successful a statement. “He trespassed his nonrecreational obligations, his idiosyncratic relationships, and national law. Not lone did Shan Hanes betray Heartland Bank and its investors, but his amerciable schemes besides jeopardized assurance successful fiscal institutions.”