Crypto Scam: US Bank in Local Community Faces Closure as CEO Falls Victim to Multi-Million Dollar

 

Heartland Tri-State Bank, a small bank in Elkhart, Kansas, had to close because its CEO, Shan Hanes, lost a lot of money in a tricky online scam.

On July 5, Hanes got worried about the money he had put into cryptocurrency. He wanted to get his money back, so he asked one of his rich clients for help. Hanes asked to borrow $12 million and promised to pay back $1 million more in just 10 days. He said he needed more money because of some issues with the digital money.

But the client, who was a local farmer, thought it was a scam and said no. The farmer even told Hanes to go to Hong Kong to get his money back. Later, when the farmer found out that Hanes had actually sent the $12 million, he told the bank's board about it.

So, the government checked the bank, and on July 28, they said the bank couldn't pay its debts and had to close. This was a big deal for the town of Elkhart because Heartland was one of only two banks there. The bank used to help the community by sponsoring events and giving money to people who needed it.

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The government's insurance company (FDIC) thinks they'll lose $54 million because of this, which is a lot when you know the bank only had $139 million. The people who owned shares in the bank might lose their money too.

The police are looking into what happened, and the FBI has been asking questions to leaders in the community. But the FBI hasn't said if they're really doing an investigation.

It's not enough clear how the tricky online money scheme worked, but the government warned that it might have been a scam related to selling pigs. Hanes hasn't been accused of doing anything wrong, but he quit his jobs on the school board and with the Kansas Bankers Association while they look into it.

This bank closing is one of a few this year in the United States, and some of them had problems because of the digital money stuff too.