Former CEO Indicted for Diverting $47.1 Million into Crypto Investments
The former CEO of Heartland Tri-State Bank in Kansas, Shane Hanes, has been indicted for allegedly diverting $47.1 million from the bank’s reserves into cryptocurrency investments. Hanes, who appeared before Congress multiple times to emphasize the importance of community banks, is accused of financial misappropriation and embezzling funds from a local church.
Details of the Case
Federal court documents reveal that Hanes approached a local businessman, Brian Mitchell, for a loan to help him withdraw funds from a crypto investment. Bloomberg reports suggest that Hanes had been investing customer funds from the bank and the church since 2022. As a result, the bank incurred significant losses and was forced to close down.
FDIC’s Intervention
The involvement of the Federal Deposit Insurance Corporation (FDIC) enabled the bank to return customer funds, but it could not continue its operations. This incident is noteworthy because it occurred in a small town with only 1,800 residents.
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