Former Heartland Tri-State Bank CEO admits to misappropriating $47 million to buy cryptocurrencies, leading to the bank's collapse

Former CEO of Heartland Tri-State Bank, Shan Hanes, admitted on Thursday to embezzling $47.1 million for personal cryptocurrency purchases, leading to the bank's collapse. From May to July 2023, Hanes made at least 10 wire transfers from the Elkhart-based bank to cryptocurrency accounts. The bank's collapse resulted in total losses for investors. The Kansas State Banking Commission seized the bank, which was later acquired by Dream First Bank.

US prosecutor Kate E. Brubacher described Hanes as a "fraudster and master manipulator," and he faces up to 30 years in prison, with sentencing scheduled for August 8, 2024.