Victims of Kansas Bank Scam to Receive Restitution After $47 Million Cryptocurrency Fraud

Overview

Millions of dollars seized by the government from a $47.1 million cryptocurrency scheme will be allocated to investors who faced financial losses.

Court Ruling

A federal judge has ordered the restitution following the case that led to the failure of a Kansas bank.

Sentencing of Shan Hanes

In August 2024, Shan Hanes, 53, of Elkhart, was sentenced to 293 months in prison after pleading guilty to embezzlement as a bank officer.

The Scheme

As the CEO of Heartland Tri-State Bank (HTSB), Hanes initiated wire transfers of bank funds to a cryptocurrency wallet belonging to third parties, which resulted in a loss of approximately $9 million for bank investors.

Recovery Efforts

The FBI managed to recover $8 million linked to the fraud.

Statement from U.S. Attorney

U.S. Attorney Kate E. Brubacher stated, “The U.S. Attorney’s Office – District of Kansas thanks the FBI for its diligent investigations that led to the discovery and recovery of over $8 million in stolen funds. Through Hanes’ conviction and prison sentence, the Department of Justice obtained justice for the victims, and now with this court order, those victims will receive some financial relief.”

Investigation Team

The case was investigated by the FBI, FDIC-OIG, FRB-OIG, and FHFA-OIG.

Assistant U.S. Attorney Aaron Smith was responsible for prosecuting the case.