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DoJ Files $225M Civil Forfeiture Case Linked to Crypto Scam Perpetrated by Disgraced CEO Shan Hanes
- A Department of Justice (DoJ) complaint reveals that a civil forfeiture case is targeting over $225 million in laundered USDT linked to disgraced CEO Shan Hanes.
- Hanes, the former CEO of Heartland Tri-State Bank, embezzled over $47 million, leading to the bank's collapse in 2023.
- Scammers employed a complex scheme involving over 93 deposit accounts, 100 intermediary wallets, and utilizing OKX accounts for fund transfers.
- OKX provided critical information to identify the laundering network operating through shared IP addresses and KYC documents traced to a Manila-based crypto scam center.
- The DoJ estimated a $3 billion transaction volume from the Manila-based network.
- Hanes is referred to as both a perpetrator and victim in the DoJ complaint, with details of wire transfers and victims of the crypto scam revealed.
- The collapse of Heartland Tri-State Bank resulted in a $35 million deficit, leading to emergency borrowing and eventual shutdown by regulators.
- Hanes was sentenced to 24 years in prison for embezzlement and other thefts, with the DoJ considering him a victim of the pig butchering scam.
- Seized USDT assets from the scam are likely to go to the FED's crypto stockpile, although total compensation for victims remains uncertain.
- Hanes lost a significant portion of his stolen funds to a pig butchering scam and investigators traced the laundering activities to the Philippines.
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