ChainCatcher news, according to CoinDesk, a complaint submitted by the U.S. Department of Justice shows that former CEO of Heartland Tri-State Bank, Shan Hanes, embezzled $47.1 million in 2023, leading to the bank's collapse and funneling most of the funds to scammers promising cryptocurrency wealth. The DOJ traced $225 million in "laundered" USDT and a total transaction volume of $3 billion related to a Manila scam network, involving 237 OKX accounts and 434 victims. Shan Hanes has been identified as one of the largest victims in the network, and the cryptocurrency seized by the DOJ may be added to the federal digital asset reserve established by President Trump’s order.The scammers laundered money by first directing victims to send USDT to 93 deposit addresses controlled by the scam group. Subsequently, the funds were transferred through up to 100 intermediary wallets, a process designed to obscure the source of the funds and confuse deposits from multiple victims.

ChainCatcher news, former Heartland Tri-State Bank CEO Shan Hanes was sentenced to 293 months in prison for embezzling $47 million in a "pig butchering" scheme.The ruling stated that Hanes relinquished ownership of the funds in the Ethereum address managed by Tether Limited. Tether blacklisted the address and froze its transaction permissions to protect investors' rights.Judge John W. Broomes confirmed that all shareholders will receive full compensation. Meanwhile, the Federal Deposit Insurance Corporation (FDIC) also provided full protection for the bank's depositors.