Former bank executive from Kansas, Shan Haneshas been sentenced to 24 years in prison for his involvement in a $47.1 million crypto fraud involving pig slaughter.

What happened: Hanes, the former CEO of Hartland Tri-State Bankwas convicted of embezzlement. He diverted the bank’s funds into crypto accounts controlled by scammers, leading to the bank’s downfall, NBC News reported.

Hanes got involved in a pig slaughter scam. He bought cryptocurrency to supposedly get a return on his investment, but he never got a return.

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Between May and June 2023, Hanes made 11 wire transfers using the stolen bank funds. He also embezzled money from a local church, an investment club and his daughter’s college savings account.

The FDIC-insured Heartland Tri-State Bank was one of five banks ordered to close by 2023.

American lawyer Kate E.Brubacher noted: “Hanes’ greed knew no bounds. He violated his professional obligations, his personal relationships and federal law.”

“Shan Hanes not only betrayed Heartland Bank and its investors, but his illegal practices also damaged the trust of financial institutions,” Brubacher said.

Why it’s important: The number of pig slaughter scams has increased significantly in recent years, with victims losing more than $75 billion worldwide, Time reported in February, citing an investigation.

In these types of scams, the scammer typically builds a relationship with the victim and then entices him/her to make some crypto investments.

Hanes’ conviction comes amid a surge in crypto fraud. Earlier in August, the Securities and Exchange Commission (SEC) filed charges against NovaTech Ltd. for defrauding more than 200,000 investors worldwide out of more than $650 million worth of crypto assets.

The Federal Bureau of Investigation (FBI) previously warned about the growing trend of scammers posing as cryptocurrency exchange employees to defraud unsuspecting victims.

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Disclaimer: This content is produced in part using AI tools and was reviewed and published by Benzinga’s editors.

Photo courtesy of: Open Clipart