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Federal law enforcements were able to recover $8.3 million investors lost in a crypto embezzlement case involving the CEO of a Kansas bank. 
According to an <a href="https://apnews.com/article/scam-cryptocurrency-kansas-savings-recovered-d19d3b5603a1c9e4cc83e31b24d26fcb#" target="_blank" rel="nofollow">Associated Press</a> report, the Federal Bureau of Investigation managed to recover the lost funds from a cryptocurrency account held by Tether(<a rel="" href="https://crypto.news/price/tether/">USDT</a>) in the Cayman Islands. These funds amounted to $8.3 million in investments belonging to 30 shareholders, including community members who were close to the convicted CEO. 
Shan Hanes, the former chief executive of <a rel="" href="https://crypto.news/former-bank-ceo-charged-in-47m-crypto-embezzlement-case/">Heartland Tri-State Bank</a>, had been sentenced to 293 months in prison after the court found that he embezzled around $47.1 million in a <a rel="" href="https://crypto.news/tag/scam/">crypto scheme</a> that led to the bank’s collapse. 
Fortunately, the $47.1 million funds were insured by the Federal Deposit Insurance, which paid off the victims’ losses. However, the scheme orchestrated by Hanes led to the collapse of Heartland Tri-State Bank and a $9 million loss for its investors. 
On Nov. 4, the FBI was able to recover $8.3 million in funds associated with the fraud and award restitution for victims. 
“Through Hanes’ conviction and prison sentence, the <a rel="" href="https://crypto.news/tag/doj/">Department of Justice</a> obtained justice for the victims, and now with this court order, those victims will receive some financial relief,” said U.S. Attorney Kate E. Brubacher in a <a href="https://www.justice.gov/usao-ks/pr/victims-cryptocurrency-scam-awarded-restitution" target="_blank" rel="nofollow">release</a>. 
 You might also like: <a rel="" href="https://crypto.news/ex-ceo-of-kansas-bank-sentenced-to-over-24-years-for-47m-crypto-fraud/"> Ex-CEO of Kansas bank sentenced to over 24 years for $47m crypto fraud </a> 
According to court records, the scam occurred in the summer of 2023. Hanes took out $47.1 million from customer accounts in 11 wire transfers over just eight weeks. He though the payoff was necessary to end investments and cash out on a crypto website, court records said. 
Prosecutors said Hanes was tricked into a scam they referred to as “pig butchering” where a third party convinces the victim to invest all their money into cryptocurrency and then making the funds vanish. 
Hanes bought what he believed to be $5,000 in cryptocurrency in late 2022, as per the instructions of someone he communicated on WhatsApp with, according to court records. A few months later, he handed over his church and investment club funds before skimming money out of customer accounts, which led to Heartland Tri-State Bank’s collapse. 
In August 2024, Hanes was sentenced to more than 24 years in prison for embezzling $47.1 million from customer accounts. 
 Read more: <a rel="" href="https://crypto.news/former-bank-ceo-charged-in-47m-crypto-embezzlement-case/"> Former bank CEO charged in $47m crypto embezzlement case </a>

FBI recovers more than $8m for victims of Kansas bank crypto scheme

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