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Bitcoin

Tether blacklist saved shareholders defrauded by bank CEO

By admin
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Tether blacklist saved shareholders defrauded by bank CEO

  protos.com 06 November 2024 13:17, UTC

Tether blacklist saved shareholders defrauded by bank CEO

When Shan Hanes, the former CEO of Heartland Tri-State Bank, was sentenced to 293 months in prison for his part in an embezzlement scheme that saw him direct over $47 million dollars into a “pig butchering” scheme, it was assumed that the failure of the bank would lead to a “complete loss of equity for investors.”

However, thanks to the intervention of Tether and its willingness to blacklist addresses, those investors will receive compensation.

An Amended Judgement filed today notes that Hanes was forfeiting his claim to funds held in 0xef2797225aCEF65d583F157bbAf023C290D0e7dB, an Ethereum address that the judgment notes is “held by or under the care or custody of Tether Limited.”

Checking this address in the tether token contract allowed Protos to confirm that it has been blacklisted by Tether and can no longer transact using the tether token.

Fortune reported that yesterday Judge John W. Broomes was able to inform all shareholders that they would be reimbursed in full for their investments.

The Federal Deposit Insurance Corporation had already fully backstopped depositors at this institution.

Tether freezing this address is likely part of its cooperation with the Federal Bureau of Investigations.

Source

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