XatolosEx-bank CEO gets 24 years after falling for crypto scam, causing bank collapse
db2Oh no the poor bank, better have a bailout quick.
Given that he was embezzling bank funds to funnel into a fake crypt scam, and the people who those funds belonged to were not in fact the bank, and the article suggests those people were not made whole, I’m just gonna say that it’s not about the bank, it’s about the people who lost shit like their life savings to this a-hole.
idunnololzBecause the bank was insured by the Federal Deposit Insurance Corporation (FDIC), the FDIC “absorbed the $47.1 million loss” after “Hanes’ fraudulent actions caused HTSB to fail and the bank investors to lose $9 million,” the US Attorney’s Office said.
It sounds like no customer with the bank lost anything. Only investors who I assume are well off anyways.
Plenty of people lost most of their retirement savings - FDIC only goes up to 250k which isn’t enough for super frugal FIRE - not when you get old and medical bills are crazy high in Murica.
Ok so I decided to read into this a little more. On FDICs website it says all customer funds should be available backing up my assumption that no customer of the bank lost any money: www.fdic.gov/resources/…/heartlandtristate.html
That contradicts statements on arstechnica.com/…/ex-bank-ceo-gets-24-years-after…
Victims may never fully recover losses, DOJ says
In the community, people are still struggling to recover, Mitchell told NBC News, noting that some people lost up to 80 percent of their retirement savings. For at least one woman, retirement is impossible now, Mitchell said, and for another local woman, it has become difficult to pay for her 93-year-old mother’s nursing home.
US Attorney Kate E. Brubacher said that it’s hard to say when or if victims will be made whole again.
But it seems like they didn’t let it fail completely and transferred all assets and most liabilities to Dream First Bank? That would be nice for the granny with more than 250K in the account.