WICHITA, Kan. (KWCH) – Hundreds of thousands of {dollars} seized by the federal government as the results of a $47.1 million cryptocurrency scheme can be divided amongst buyers who suffered monetary losses.
A federal choose ordered the restitution on Monday in the case of a scheme that brought on a Kansas financial institution to fail.
In August 2024, Shan Hanes, 53, of Elkhart was sentenced to 293 months in jail after pleading responsible to at least one depend of embezzlement by a financial institution officer.
Whereas the chief govt officer (CEO) of Heartland Tri-State Financial institution (HTSB), Hanes initiated outgoing wire transfers of financial institution funds to a cryptocurrency pockets belonging to 3rd events. This brought on Heartland to break down, and the financial institution buyers to lose roughly $9 million.
The Federal Bureau of Investigation (FBI) recovered $8 million in funds related to the fraud.
“The U.S. Legal professional’s Workplace – District of Kansas thanks the FBI for its diligent investigations that led to the invention and restoration of over $8 million in stolen funds. By means of Hanes’ conviction and jail sentence, the Division of Justice obtained justice for the victims, and now with this courtroom order, these victims will obtain some monetary reduction,” stated U.S. Legal professional Kate E. Brubacher.
The Federal Bureau of Investigation (FBI), Federal Deposit Insurance coverage Company – Workplace of Inspector Common (FDIC-OIG), Federal Reserve Board – Workplace of Inspector Common (FRB-OIG), and Federal Housing Finance Company – Workplace of Inspector Common ((FHFA-OIG) investigated the case. Assistant U.S. Legal professional Aaron Smith prosecuted the case.
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