Kansas Town Rocked by Former Banker Who Was Duped by $47,100,000 Crypto Scam: Report

The ex-CEO of a small bank reportedly sent shockwaves through a small American community when he fell for an elaborate crypto scam, causing over $47 million in damages and wiping out generational wealth. In August of last year, Shan Hanes, the former CEO of Heartland Tri-State Bank (HTSB) in Elkhart, Kansas, was sentenced to 24 years in prison for funneling the bank’s money into a cryptocurrency scheme that turned out to be a blatant scam. The Justice Department said that Hanes had fallen victim to a pig butchering scheme, a widespread type of scheme where scammers build relationships with their targeted victims to lure them into making fraudulent investments. A new report from the New York Times details how the collapse of the bank – in which many townspeople held investments – affected the community. In July of 2023, the Kansas banking commissioner showed up at the bank to announce that the lender would be shut down and transferred over to a new company. While the deposits were insured, shares of HTSB had become completely worthless, erasing many of Elkhart residents’ retirements, savings and emergency funds. Jim Tucker, who served on HTSB’s board with his father, described how Hanes repeatedly convinced his colleagues and the community to keep borrowing money to “invest” in the scam. The Tucker family lost $1.4 million worth of HTSB shares, wealth that was meant to be passed on to their children. A pair of brothers, Moe and John Houtz, lost hundreds of thousands of dollars from HTSB’s collapse. And Hanes himself drained his own personal savings, then began stealing directly from his local investment club, his church and from HTSB’s reserves. Says U.S. Attorney Kate E. Brubacher, “Hanes’ greed knew no bounds. He trespassed his professional obligations, his personal relationships, and federal law. Not only did Shan Hanes betray Heartland Bank and its investors, but his illegal schemes also jeopardized confidence in financial institutions.” Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox Check Price Action Follow us on X , Facebook and Telegram Surf The Daily Hodl Mix Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing. Generated Image: Midjourney The post Kansas Town Rocked by Former Banker Who Was Duped by $47,100,000 Crypto Scam: Report appeared first on The Daily Hodl .