A former Kansas bank chief executive was sentenced to over 24 years in prison for embezzling $47 million in a crypto fraud that led to the bank’s collapse.

Shan Hanes, the former chief executive of the now-failed Heartland Tri-State Bank, has been sentenced to 293 months in prison after the court found that he embezzled “tens of millions of dollars” in a crypto scheme that led to the bank’s collapse.

In an Aug. 19 press release, the U.S. Attorney’s Office in Kansas said that Hanes, who pleaded guilty to one count of embezzlement by a bank officer, orchestrated over a dozen wire transfers totaling more than $47 million from Heartland Tri-State Bank to a crypto wallet between May and July 2023 in a scheme known as “pig butchering.”

During that period, the bank was insured by the Federal Deposit Insurance Corporation, which absorbed the $47.1 million loss caused by Hanes’ actions. The fraudulent scheme not only led to the bank’s failure but also resulted in a $9 million loss for its investors.

U.S. Attorney Kate E. Brubacher says Hanes “trespassed his professional obligations,” adding that the sentence is a “measure of justice for the victims and a statement that the U.S. Department of Justice will hold those accountable who violate positions of trust for their own gain.”

Hanes’ case highlights the risks in the crypto sector, where the pseudo-anonymous nature of blockchain networks can appeal to those seeking quick and potentially illicit gains. The sentencing follows the case of Reginald Fowler, a former Minnesota Vikings co-owner, who was also sentenced to six years in prison for running a “shadow bank” within the crypto industry, involving over $700 million in unregulated transactions in 2018.