On November 4, 2024, a federal courtroom in Wichita, Kansas, erupted in relief as victims of embezzlement by former bank CEO Shan Hanes learned their lost savings would be recovered.

The FBI played a crucial role in this recovery, having seized $8 million from a cryptocurrency account linked to the fraud, which will be returned to the victims.

Hanes, who was sentenced to 24 years in prison for embezzling $47 million from customer accounts, diverted funds to cryptocurrency scams, leading to the failure of Heartland Tri-State Bank.

Federal regulators shut down Hanes' Heartland Tri-State Bank in Elkhart, Kansas, after it was drained of funds, although customer deposits were insured by the FDIC.

Despite claiming he was a victim of a scam himself, prosecutors argued that Hanes crossed ethical boundaries by misappropriating customer funds and violating banking regulations.

The scheme escalated in the summer of 2023, culminating in 11 wire transfers totaling $47.1 million over eight weeks, as Hanes believed he was cashing out investments.

Judge John W. Broomes prioritized compensating the shareholders who suffered losses over the FDIC's claim for reimbursement, acknowledging their dire financial situations.

At age 53, Hanes may face significant time in prison and might not be able to repay the $47.1 million owed to the FDIC before his release.

Initially, thirty shareholders thought they had lost $8.3 million in investments, but were later informed they would be fully compensated.

The fraud was uncovered in July 2023 after a tip from the bank's CFO, revealing that Hanes's trusted status in the community contributed to the fraud going unreported initially.

Victims described Hanes as deceitful and malicious, with one shareholder, Margaret Grice, unexpectedly learning she would recover almost $250,000, her entire 401(k).

Several federal agencies, including the FDIC and the Federal Reserve, participated in the investigation of Hanes' fraudulent activities.