The Kansas State Prosecutor's Office, USA, has charged the former director of the American Heartland Tri-State Bank, Shan Hayes, with illegally using bank funds to purchase cryptocurrency, Bloomberg reports with a link to court documents.
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What is known
According to the presented information, Hayes used bank funds, and also embezzled funds from a local church and an investment club to purchase cryptocurrency for personal use.
According to law enforcement agencies, using his official position, Hayes made more than ten transfers from bank accounts from May to July 2023, which led to the embezzlement of bank funds, the financial collapse of the bank and the closure of the institution. Presumably, $47.1 million was stolen.
In total, as a result of fraud and hacking, the crypto industry suffered losses of $1.8 billion in 2023, according to a report from the analytical platform Immunefi.
The largest fraud in the United States related to cryptocurrencies is currently the case of the FTX cryptocurrency exchange that went bankrupt in November 2022. Former FTX executive Sam Bankman-Fried is accused of defrauding clients, investors and creditors out of more than $8 billion. If convicted, he faces more than 100 years in prison on the combined charges.