A bank manager stole $47 million for a crypto scam and now has to go to prison

A Kansas man was sentenced to 24 years in prison after funneling $47.1 million into a pork slaughter scam using money from the bank he ran. Shan Hanes, the former CEO of small Heartland Tri-State Bank, pleaded guilty to embezzlement after diverting the funds to the fraudsters' crypto accounts, causing the bank's collapse.

As NBC News reported, Hanes fell for a pork slaughter scam in which he tried to buy cryptocurrencies “to get the supposed return on his investments,” which he never received.

In pork slaughter scams, a scammer typically seeks out and contacts their victim through a messaging app, dating service or social media platform. They then attempt to build a relationship – often romantic – with their victim before eventually luring them into making a series of crypto investments.

From May to June 2023, Hanes made 11 wire transfers using the bank's stolen funds. He also embezzled money from a local church, an investment club, and his daughter's college savings account. Heartland Tri-State Bank, which was then insured by the FDIC, was one of the five banks closed in 2023.

“Hanes' greed knew no bounds,” said U.S. Attorney Kate E. Brubacher in a statement. “He violated his professional duties, his personal relationships and federal law. Shan Hanes not only defrauded Heartland Bank and its investors, but also undermined trust in financial institutions with his illegal activities.”