Elkhart, Kansas – In a stunning revelation, Shane Hanes, the former CEO of Heartland Tri-State Bank, stands accused of a $47 million embezzlement. This high-level financial misconduct has sent shockwaves through the small community, leaving a trail of financial ruin.

From Respected CEO to Federal Defendant

Hanes, who once led the Elkhart-based bank and advocated for community banks before Congress, now faces serious allegations. Federal court documents outline a scheme where he diverted millions from the bank’s coffers and a local church into dubious cryptocurrency investments.

A Local Businessman’s Involvement

The intrigue deepens with the involvement of local businessman Brian Mitchell, who was solicited by Hanes for a loan under the pretext of aiding in the withdrawal of funds from a crypto venture.

The Collapse of Heartland Tri-State Bank

Reports indicate that Hanes had been funneling customer and church funds into his crypto escapades since 2022, leading to the bank’s financial collapse. Despite the FDIC’s intervention to safeguard customer deposits, the bank was unable to recover and ceased operations.

The Larger Trend of Crypto Scandals

While the crypto world is no stranger to scandal, such as the infamous FTX collapse, the situation in Elkhart is particularly shocking due to its scale and the small size of the town affected, a tight-knit community of just 1,800 residents.