Mumbai, August 27: Shan Hanes, the former CEO of Heartland Tri-State Bank, has been sentenced to over 24 years in federal prison for misappropriating USD 47 million in a cryptocurrency scam. Hanes fell victim to a "pig butchering" scheme, which deceived him into investing in crypto with promises of high returns that never materialised. Over eight weeks last year, Hanes conducted multiple wire transfers, leading to the collapse of Heartland Tri-State Bank and its subsequent takeover by the FDIC. Let's read who is Shan Hanes and what is a "Pig-Butchering" scam.

This incident marked one of the five US bank failures in 2023. A report states that from May to June 2023, Hanes made multiple wire transfers with the bank’s funds and also stole money from a local church, an investment club, and his daughter’s college savings. He was tricked by scammers into investing in cryptocurrency, who claimed additional funds were needed to unlock returns. The 53-year-old saw no profit and lost all the stolen money due to the scam. Cryptocurrency for Salary: Dubai Court Allows Payment of Salaries in Cryptos Including Bitcoin, Say Reports.

Who Is Shan Hanes?

Shan Hanes is the former CEO of  Heartland Tri-State Bank. He was sentenced to over 24 years in federal prison for misappropriating USD 47 million in a cryptocurrency scam. The former CEO is also facing 28 additional charges connected to the crypto scheme in Morton County District Court, according to the Topeka Capital-Journal. This case, which could result in a potential 86-month sentence, is set to go to trial in October. WazirX Security Breach: Crypto Platform Temporarily Pauses Trading Amid Cyber Attack, Following Investigation.

What Is a ‘Pig-Butchering’ Scam?

A pig butchering scam is a type of fraud where scammers gain the victim's trust, and then trick them into investing money with fake promises of big profits. Once the victim invests a lot of money, the scammers take off with it, leaving the victim with nothing. Pig butchering scams are becoming increasingly common, with reports of such frauds rising significantly as scammers exploit new investment trends and online platforms.

(The above story first appeared on LatestLY on Aug 27, 2024 02:48 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).