OKX Helps DOJ Uncover $225M USDT Scam Tied to Kansas Banker’s Embezzlement

A former Kansas banker who embezzled $47 million from Heartland Tri-State Bank in 2023 fell victim to a massive international crypto scam, triggering one of the largest USDT seizures in U.S. history. According to a newly filed Department of Justice (DOJ) complaint, key information provided by crypto exchange OKX was instrumental in exposing the laundering network behind the scam.

Shan Hanes, the disgraced CEO of the now-collapsed community bank, wired $47.1 million over six weeks to a crypto wallet he controlled. Unnoticed due to timing between regulatory reporting periods, the theft drained the bank’s liquidity, forced $21 million in emergency borrowing, and left a $35 million capital shortfall—leading to its shutdown in July 2023.

The DOJ’s complaint revealed that scammers operated a complex laundering scheme using 93 initial deposit addresses and over 100 intermediary wallets. These funds were funneled into 22 primary OKX accounts and shuffled through another 122 linked accounts using shared IPs and reused KYC documents.

OKX played a pivotal role by supplying investigators with critical data, enabling the DOJ to map out the laundering structure. The accounts were tied to ITECHNO Specialist Inc., a Philippines-based call center running a pig butchering scam that generated $3 billion in transaction volume.

Hanes, the largest identified victim, lost $3.3 million to the scam. He also siphoned funds from local institutions and family assets to cover the losses. He was sentenced to 24 years in prison in 2024.

The DOJ intends to add the seized crypto—primarily USDT—to a forthcoming federal digital asset stockpile, as ordered by President Trump. While 434 victims were identified, only a small number have been confirmed, and restitution efforts remain ongoing.