Shane Hanes, the former CEO of Heartland Tri-State Bank, has been accused of illegally appropriating $47.1 million of client funds, which he invested in digital assets.
According to documents from the Kansas District Court, Hanes began purchasing cryptocurrency with personal funds in December 2022. By early 2023, he had used money from a local church and an investment club for these purchases.
In May, the executive misappropriated assets from Heartland Tri-State clients, leading to the bank’s bankruptcy. On July 28, the FDIC took control of the financial institution and reimbursed the affected clients.
In February 2024, the SEC charged Brian Sewell, founder of the online course American Bitcoin Academy, and his company Rockwell Capital Management with a $1.2 million fraud.
Earlier in Hong Kong, an employee of a multinational company transferred $25 million to fraudsters after a call with “colleagues,” who turned out to be deepfakes.
Back in January, the CFTC warned about fraud involving artificial intelligence.