Shane Haynes transferred $47.1 million into crypto assets. It is not clear from the Kansas federal court documents what kind of assets we are talking about, but it is said that the former executive director was involved in other financial fraud.
Since 2022, the defendant has invested not only the funds of Heartland Tri-State Bank clients in digital currencies, but also the money of a Kansas Christian church. Court documents allege that the defendant applied for a $12 million loan from businessman Brian Mitchell. Sean Hayes asked for a loan to withdraw funds from his investment in cryptocurrency, promising to return it in ten days, and offered interest on $1 million. But he did not fulfill his promise.
Due to the CEO's financial dealings, Heartland Tri-State Bank was forced to announce its closure. The Federal Deposit Insurance Corporation (FDIC) returned funds to affected bank customers.
Earlier, the US Commodity Futures Trading Commission (CFTC) announced that the number of fraudulent projects pretending to be neural networks and using artificial intelligence to steal cryptocurrencies has increased in the financial market.
Source: Bits
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