DOJ Targets $225 Million in Crypto Linked to Kansas Bank Collapse
A Kansas banker embezzled $47 million from Heartland Tri-State Bank, leading to its collapse in 2023. He lost much of this money to overseas crypto scammers linked to a significant DOJ bust.
Key details include:
- The DOJ has filed a civil forfeiture action targeting over $225 million in laundered USDT.
- The laundering scheme involved directing victims to send funds to 93 scam-controlled addresses, which were then funneled through 100 intermediary wallets.
- Approximately $3 billion in transaction volume was generated by this network.
- There were 434 victims identified, with 60 victims losing a total of $19.4 million; the largest loss was by Shan Hanes at $3.3 million.
- Hanes initiated 10 wire transfers totaling around $47.1 million to a crypto wallet he controlled during a six-week period.
- The bank's liquidity crisis led to $21 million in emergency borrowing and a regulatory shutdown in July 2023.
- Hanes was sentenced to 24 years in prison in August 2024.
The seized crypto is likely designated for a future stockpile ordered by President Trump, although specifics on returns to victims remain unclear.