Founders of the crypto fintech company Bankera are under scrutiny for allegedly misappropriating funds from their 2018 initial coin offering (ICO) to acquire high-end real estate around the globe, as reported by the Organized Crime and Corruption Reporting Project (OCCRP).
On April 28, the OCCRP disclosed that confidential company documents and bank statements revealed nearly €50 million ($57 million) of the €100 million raised during Bankera’s ICO was redirected to a bank in Vanuatu, which was reportedly acquired by Bankera’s founders—Vytautas Karalevičius, Justas Dobiliauskas, and Mantas Mockevičius.
ICO Funds Allegedly Funneled to Luxury Properties
The report asserts that the Vanuatu bank subsequently granted millions of euros in loans to firms controlled by the trio, allowing them to develop a luxury real estate portfolio that includes a villa on the French Riviera and several upscale properties in Lithuania, where Bankera was established.
According to the leaked documents, funds were allegedly siphoned through loans to affiliated companies and directly to the founders for personal expenditures.
The founders’ legal team has denied any allegations of fraud related to the ICO but did not provide specific comments on the transactions in question.
Marketed as the “bank for the blockchain era,” Bankera aimed to provide services such as cryptocurrency holding, trading, and investment products.
The ICO attracted investors with promises of discounted offerings and weekly returns in BNK tokens.
However, an investor reported to the OCCRP that payouts soon “plummeted significantly below the promised amount” and the revenue-sharing initiative was completely suspended in 2022.
Bankera had also committed to obtaining a European Union banking license, a commitment that has yet to be fulfilled.
Despite amassing €100 million through its ICO, the fully diluted market value of Bankera’s BNK token has been reduced to approximately $975,710, as per CoinGecko statistics.
Nevertheless, Bankera continues to operate, providing various crypto-related financial services and maintaining an active presence on LinkedIn and, to a lesser extent, on X (formerly Twitter).
This week our team is attending @icegamingglobal conference in Barcelona, Spain. If you are around come and meet us at our stand 5F47 to learn more about our offerings for #iGaming businesses!#ICE25 pic.twitter.com/4Bu4vLSprz
— Bankera (@Bankeracom) January 20, 2025
The unfolding allegations have sparked renewed discussions regarding the need for enhanced accountability and transparency within the cryptocurrency fundraising landscape.
SEC Moves to Dismiss Dragonchain Lawsuit
In a separate development, the SEC recently filed a joint motion with the blockchain firm Dragonchain to dismiss an ongoing lawsuit against it.
The SEC initially took legal action against Dragonchain in August 2022, accusing the company and its affiliates of an unregistered securities offering related to their 2017 ICO.
The agency, under former Chair Gary Gensler, had aggressively pursued enforcement against various crypto projects, asserting that many digital assets were unregistered investment securities.
However, with Donald Trump’s reelection and Gensler’s exit, the SEC has adopted a more lenient approach toward cryptocurrency regulation.
The newly established Crypto Task Force is focusing on delineating which digital assets lie outside the agency’s jurisdiction, recently indicating that most meme coins do not qualify as securities.
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