A small bank in Kansas, USA, suddenly closed its doors after it became known that its CEO, Shan Haneswas embroiled in a cryptocurrency scam.
The banker, who ran the bank with assets worth $139 million until regulators intervened, is said to have carried out a transfer of funds. US$12 million (R$60 million) under the guise of an investment in Bitcoin.
Things started to go wrong when the CEO discovered he had fallen for a scam and had to use bank money to get the money back, leading to even more losses.
“Don’t worry, it was just a scam”
According to Bloomberg, the bank’s CEO became desperate when he discovered he could not withdraw money on a cryptocurrency platform and was asked to send more money.
He then arranged a meeting in his office with one of his wealthiest clients – and made a strange request.
The customer, who preferred to remain anonymous, revealed that the CEO had asked him for a $12 million loan to solve a “cryptocurrency problem.”
He promised to pay ten days later and offered $1 million in interest to make it worth it. Although he assured the client that the bank’s funds were not at risk, two sources confirmed that they were.

Hanes said he knew someone who helped him invest in cryptocurrencies. But there was a problem with bank payments, so the story went, and he had to put in more money. At least some had gone to an entity in Hong Kong.
After rejecting the loan request, the customer, upon hearing about the transfer of $12 million by Hanes, warned a director of the bank’s board about possible financial risks.
As a result, regulators intervened and declared the bank bankrupt. Banking responsibility was transferred to the Federal Deposit Insurance Corp., while Dream First Bank of Syracuse, Kansas, took over almost all of Heartland’s assets and deposits.
“We declared the bank bankrupt due to fraud. We cannot provide details about this. Investigations are underway. No problem.” authorities said.
“Pig slaughter”
The scheme in question is not uncommon in the cryptocurrency market and is known as ‘pig slaughter’, where victims are convinced to invest increasing amounts of moneyanalogous to the process of fattening a pig before slaughter.
As for the then CEO, his situation changed drastically. Currently unemployed, he has resigned from the local school board and is no longer affiliated with the Kansas Bankers Association.
Elkhart residents have noted seeing Hanes around town occasionally. However, most of the time he stays isolated in his home, a typical American ranch-style house, not far from the courthouse where the FBI has established its activities to investigate the case.
The bank’s closure resulted in a $54.2 million loss to the United States Credit Guarantee Fund (FDIC).
Source: Live Coins

Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.