{"id":66105,"date":"2023-09-27T15:08:59","date_gmt":"2023-09-27T19:08:59","guid":{"rendered":"https:\/\/ifintechworld.com\/markets\/crypto\/local-us-bank-shut-down-after-ceo-lost-millions-in-crypto-scam\/"},"modified":"2023-09-27T15:09:02","modified_gmt":"2023-09-27T19:09:02","slug":"local-us-bank-shut-down-after-ceo-lost-millions-in-crypto-scam","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=66105","title":{"rendered":"Local US Bank Shut Down after CEO Lost Millions in Crypto Scam"},"content":{"rendered":"
\n

Heartland Tri-State Bank<\/strong>, a community bank in Elkhart, Kansas, has been forced to shut down after its CEO,\u00a0Shan Hanes<\/strong>, lost millions of dollars in a cryptocurrency scam.\u00a0<\/p>\n

The incident unfolded on July 5 when Hanes, desperate to retrieve his money from a supposed cryptocurrency investment, approached one of his wealthy clients with a peculiar request, according to a\u00a0recent report from Bloomberg.<\/p>\n

Per the report, the banker asked the client to lend him $12 million, promising to repay the loan with an additional $1 million in interest after just 10 days.\u00a0<\/p>\n

Hanes said he was investing in crypto with the help of someone else and claimed that there were some wire payment issues, which needed an infusion of more funds.<\/p>\n

The client, a local farmer, ultimately declined to provide the loan, suspecting it to be a crypto scam.\u00a0<\/p>\n

He even reportedly advised Hanes to go to Hong Kong in order to recover the money.<\/p>\n

However, after discovering that Hanes had indeed wired the $12 million, the farmer took the matter to a member of Heartland’s board.<\/p>\n

Consequently, the Kansas Office of the State Bank Commissioner launched an investigation into the bank and declared it insolvent on July 28.<\/p>\n

The closure of Heartland Tri-State Bank has sent shockwaves through Elkhart, a tight-knit community where the bank played a vital role.\u00a0<\/p>\n

As one of only two banks in town, Heartland was deeply embedded in the fabric of the community, sponsoring local events and providing financial assistance to those in need.\u00a0<\/p>\n

FDIC Estimates Heartland’s Loss at $54 Million<\/h2>\n

The Federal Deposit Insurance Corp. (FDIC), which was appointed as the bank’s receiver, has estimated a loss of $54 million from its insurance fund to protect depositors.\u00a0<\/p>\n

The substantial loss is an indication of the severity of the situation, given that Heartland had total assets of only $139 million.\u00a0<\/p>\n

Shareholders, including Hanes and his family, face the possibility of losing their investments as the bank’s stock was owned by a separate holding company.<\/p>\n

The incident has also drawn the attention of law enforcement agencies.\u00a0<\/p>\n

FBI agents have been conducting investigations, questioning community leaders with ties to the bank.\u00a0<\/p>\n

The FBI, however, has neither confirmed nor denied the existence of an investigation.\u00a0<\/p>\n

Exact Details of the Crypto Scam Remain Unclear<\/h2>\n

The exact details of the crypto scam that ensnared Hanes remain unclear.<\/p>\n

However, a warning issued by the US Department of the Treasury’s Financial Crimes Enforcement Network suggested that it was probably a pig butchering scam.\u00a0<\/p>\n

Meanwhile, Hanes has not been accused of any wrongdoing.<\/p>\n

He has resigned from his positions on the school board and the Kansas Bankers Association and is awaiting the outcome of the ongoing investigation.<\/p>\n

The collapse of Heartland comes as four major US lenders have failed so far this year, including\u00a0Silvergate Bank,\u00a0Signature Bank,\u00a0Silicon Valley Bank, and First Republic Bank.<\/p>\n

Among these banks, the failure of Silvergate and Signature was\u00a0partly related\u00a0to the 2022 crypto meltdown.\u00a0<\/p>\n<\/p><\/div>\n

Read the full article here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Heartland Tri-State Bank, a community bank in Elkhart, Kansas, has been forced to shut down after its CEO,\u00a0Shan Hanes, lost millions of dollars in a cryptocurrency scam.\u00a0 The incident unfolded on July 5 when Hanes, desperate to retrieve his money from a supposed cryptocurrency investment, approached one of his wealthy clients with a peculiar request, […]<\/p>\n","protected":false},"author":1,"featured_media":66106,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[243],"tags":[83],"class_list":["post-66105","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-crypto","tag-featured"],"yoast_head":"\nLocal US Bank Shut Down after CEO Lost Millions in Crypto Scam | iFintechWorld<\/title>\n<meta name=\"description\" content=\"Heartland Tri-State Bank, a community bank in Elkhart, Kansas, has been forced to shut down after its CEO,\u00a0Shan Hanes, lost 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