In the small town of Elkhart, Kansas, a financial scandal has rocked the entire local community. Former General Director of Heartland Tri-STATE, Shanghe Hins, has been sentenced to 24 years and 5 months of imprisonment for the theft of $47 million. The man fell victim to a cryptocurrency scam known as Pig Butchering (juni cutting).
The 53-year-old Hinse fell into the trap of scammers towards the end of 2022. These unidentified attackers convinced him to invest in what he believed was legal virtual currency. The communication took place through the WhatsApp messenger. Starting with his personal funds, Hinse soon began stealing money from various sources, including the local church, an investment club, and even his daughter to pay for college.
Hinse caused severe damage to the Heartland Tri-State bank. Between May and July 2023, he conducted 11 transactions totaling $47 million to accounts controlled by the scammers. In order to carry out these operations, Hinse deceived employees and attempted to bypass established rules and limits on transfers.
The actions of the banker had catastrophic consequences for Elkhart. Many bank shareholders lost a significant portion of their pension savings, leaving some unable to afford basic necessities, including remaining in nursing homes.
Brian Mitchell, a former neighbor of Haines and a local entrepreneur, recalled a conversation with the accused on July 5, 2023. Hinse asked him for a $12 million loan to “activate” funds already transferred to the scammers. Despite Mitchell’s warnings about being a victim of deception, Hinse transferred over $12.4 million to the scammers in the following two days.
The collapse of the Heartland Tri-State Bank became inevitable. On July 28, 2023, the Kansas Department of the Banking Commissioner closed the financial institution, placing it under the control of the Federal Deposit Insurance Corporation (FDIC). While bank shareholders were left with nothing, fortunately, the investors did not lose their money.