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Ex-CEO of Collapsed Bank Sentenced to Over 24 Years in Prison for Embezzling $47,100,000 in Crypto Scheme: DOJ

Ex-CEO of Collapsed Bank Sentenced to Over 24 Years in Prison for Embezzling ,100,000 in Crypto Scheme: DOJ

The former CEO of a failed bank in Elkhart, Kansas will spend 24 years behind bars after funneling millions of depositors’ money into a cryptocurrency scheme. The Justice Department says that between May and July last year,  Shan Hanes, who was then serving as CEO of Heartland Tri-State Bank (HTSB), sent a total of $47.1 […]

The post Ex-CEO of Collapsed Bank Sentenced to Over 24 Years in Prison for Embezzling $47,100,000 in Crypto Scheme: DOJ appeared first on The Daily Hodl.

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Former Bank CEO Sentenced to Prison for $47M Crypto Fraud Leading to Bank Collapse

Former Bank CEO Sentenced to Prison for M Crypto Fraud Leading to Bank CollapseThe former CEO of failed Heartland Tri-State Bank was sentenced to over 24 years in prison for embezzling more than $47 million in a fraudulent crypto scheme that caused the bank’s collapse. He funneled the stolen funds into cryptocurrency wallets linked to a “pig butchering” scam, leading to a $9 million loss for investors and […]

Pakistan Digital Currency Reforms Set Path for CBDC as Legal Tender

Former Finance VP Pleads Guilty to Embezzling $4 Million From Crypto Firm

Former Finance VP Pleads Guilty to Embezzling  Million From Crypto FirmDylan Meissner, 31, of Westport, has pleaded guilty to fraud in Hartford federal court, the U.S. Department of Justice (DOJ) announced. Meissner, a former Vice President of Finance at a cryptocurrency research firm, admitted to stealing over $4 million from his employer. Starting in January 2022, Meissner secured a $170,000 loan in ethereum from his […]

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Former Bank CEO Pleads Guilty to Embezzling $47M to Buy Crypto, Leading to Bank Collapse

Former Bank CEO Pleads Guilty to Embezzling M to Buy Crypto, Leading to Bank CollapseFormer Heartland Tri-State Bank CEO Shan Hanes pleaded guilty on Thursday to embezzling $47.1 million for personal cryptocurrency purchases, leading to the bank’s collapse. From May to July 2023, Hanes executed at least 10 wire transfers from the Elkhart-based bank to cryptocurrency accounts. The bank’s failure resulted in a total loss of equity for investors. […]

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Inflation and Anguish: Outraged Lebanese Depositors Continue to Riot Against Financial Institutions

Inflation and Anguish: Outraged Lebanese Depositors Continue to Riot Against Financial InstitutionsAmid Lebanon’s financial crisis, significant demonstrations have erupted in Beirut targeting financial institutions. Outraged Lebanese depositors, witnessing their savings vanish, have resorted to smashing bank windows, setting fires, and engaging in riots. Simultaneously, leaders of Lebanon’s central bank face grave allegations of fraud, embezzlement, and political corruption. Lebanese Citizens Left Penniless as Financial Institutions Crumble […]

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Do Kwon’s Terraform Sent $7 Million to Law Firm Before Collapse, Report Unveils

Do Kwon’s Terraform Sent  Million to Law Firm Before Collapse, Report UnveilsProsecutors investigating failed blockchain firm Terraform Labs have found out that its Singapore office sent millions of U.S. dollars to lawyers just before the crash of its cryptocurrencies. According to Korean media, the transfers suggest that co-founder Do Kwon was aware of the imminent collapse. Terraform Labs Transferred Large Amounts of Money to South Korean […]

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Report: Former FTX Director of Engineering Nishad Singh Negotiating Plea Deal with Prosecutors 

Report: Former FTX Director of Engineering Nishad Singh Negotiating Plea Deal with Prosecutors Another member of Sam Bankman-Fried’s inner circle allegedly plans to plead guilty to criminal charges for his role in the alleged fraud that occurred at the cryptocurrency exchange FTX. According to unnamed sources familiar with the matter, Nishad Singh, FTX’s former director of engineering, is attempting to negotiate a deal with New York prosecutors. Sources […]

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Bithumb owner arrested in South Korea over alleged embezzlement

The net is closing in on Bithumb executives as the suspected real owner of the exchange is arrested.

The suspected real owner of South Korea’s largest crypto exchange Bithumb has been arrested on alleged embezzlement charges on Feb. 2 local time.

According to local media reports, Kang Jong-hyun was arrested on charges of alleged embezzlement. The Seoul Southern District Court issued an arrest warrant for the businessman on Jan. 25 with multiple charges, including dereliction of duty, market manipulation, and fraudulent transactions.

The 41-year-old is the elder brother of Kang Ji-yeon, the head of Bithumb affiliate Inbiogen. The firm holds the largest share in Vidente Vidente, which is the biggest shareholder of Bithumb with a 34.2% stake.

According to prosecutors, the brothers colluded to embezzle corporate funds and manipulate stock prices of Inbiogen and video production firm Bucket Studio through the issuance of convertible bonds.

In a notice on the Bucket Studio website, CEO Kang Ji-yeon apologized to shareholders and said the claims against his brother were “unconfirmed,” adding that he will cooperate with the authorities in the investigation.

One of the few public photos of Kang Jong-Hyun. Source: Korea Post English

On Jan. 10, Cointelegraph reported that the South Korean National Tax Service agency launched an investigation into South Korea’s largest crypto exchange. Investigators reportedly raided Bithumb’s Seoul headquarters as a part of the ongoing tax probe.

The saga goes even deeper as Bithumb’s largest shareholder, Park Mo, was found dead in front of his own home in late December.

He was also subject to an investigation amid allegations of embezzlement and market manipulation. It was suspected that Park Mo took his own life due to the charges brought against him.

Related: Bithumb former chair Lee Jung-Hoon acquitted in the first instance

Bithumb has a 24 hours trading volume of $370 million, according to CoinGecko. The exchange, established in 2014, offers 191 coins and 287 trading pairs, BTC/KRW is the most popular.

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South Korean prosecutors request arrest warrant for Bithumb owner: Report

One of the country’s largest crypto exchanges has fallen under investigators’ scrutiny over allegations of embezzlement by company executives.

According to local news outlet Infomax, South Korean prosecutors requested an arrest warrant on Jan. 25 for Kang Jong-Hyun, chairman and owner of cryptocurrency exchange Bithumb. Kang is wanted on allegations of embezzlement related to his activities at the exchange.

The same day, the Financial Investigation 2nd Division of the Seoul Southern District Prosecutor’s Office sentenced Kang and two Bithumb executives on charges of embezzlement and breach of trust under the Act on the Aggravated Punishment of Specific Economic Crimes. The executives were also charged with conducting fraudulent illegal transactions under the Capital Markets Act. 

One of the few public photos of Kang Jong-Hyun. Source: Korea Post English

Cointelegraph previously reported on Jan. 10 that Bithumb was placed under a “special tax investigation” by the country’s National Tax Service. Simultaneous to the incident, Kang is under investigation over his role in allegedly manipulating the stock prices of Bithumb affiliates Inbiogen and Bucket Studio through the issuance of convertible bonds. Vidente is currently the largest shareholder of Bithumb, with a 34.2% stake. 

On Dec. 30, 2022, Bithumb’s largest shareholder, Park Mo, was found dead in front of his own home following investigations into his alleged role in embezzling funds from Bithumb-related companies. It is suspected that Mo may have taken his own life due to the nature of the criminal allegations brought against him.

Subsequent to the development, Lee Jung-Hoon, former chairman of Bithumb, was found not guilty of a $70 million fraud charge regarding his activities at Bithumb. The exchange is one of South Korea's largest, with a 24-hour trade volume of $467 million. 

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Twitter User Accuses Nexo of Embezzlement Through Charity, Crypto Lender Denies Allegations

Twitter User Accuses Nexo of Embezzlement Through Charity, Crypto Lender Denies AllegationsA Twitter account has accused the Bulgarian co-founders of the Swiss-based cryptocurrency lender Nexo of misappropriating funds from a charity platform. The company has rejected the allegations in the anonymous attack, which comes after Nexo offered a buyout deal to troubled rival Celsius. Anonymous Allegations Against Co-Founders Circulated on Social Media A Twitter user going […]

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