Bankera Founders Accused of Misusing ICO Funds for Luxury Real Estate Purchases

The founders of crypto fintech firm Bankera allegedly diverted millions from their 2018 initial coin offering (ICO) to acquire luxury properties worldwide, according to a bombshell report by the Organized Crime and Corruption Reporting Project (OCCRP). The revelations raise serious questions about accountability in the crypto fundraising space and investor protections.

The Vanuatu Connection: How ICO Funds Were Allegedly Funneled

The OCCRP report, published April 28, cites leaked company records and bank statements showing that nearly half of Bankera’s €100 million ($114 million) ICO proceeds were transferred to a bank in Vanuatu – a Pacific island nation known for its banking secrecy laws. What makes this transaction particularly suspicious? The founders themselves had purchased this very bank.

The three Lithuanian founders – Vytautas Karalevičius, Justas Dobiliauskas and Mantas Mockevičius – allegedly used this arrangement to:

• Issue millions in loans to their own companies
• Purchase high-end real estate including a French Riviera villa
• Receive millions more in “personal use” loans

Broken Promises: Bankera’s Failed Commitments

Bankera had positioned itself as the “bank for the blockchain era,” attracting investors with several key promises:

• Weekly BNK token payouts: These reportedly dropped “significantly below” promised amounts before being halted entirely in 2022
• EU banking license: Never materialized despite being a central selling point
• Service discounts: Value proposition eroded as the project failed to deliver

The current fully diluted value of BNK tokens stands at just $975,710 – a staggering decline from the €100 million raised, according to CoinGecko data.

The Legal Fallout and Industry Implications

While lawyers for the founders deny the ICO was fraudulent, they declined to address specific transactions. The case highlights several critical issues for the crypto industry:

1. ICO accountability: Many early crypto projects operated with minimal oversight
2. Investor protections: The lack of regulatory frameworks left backers vulnerable
3. Transparency gaps: The use of offshore entities obscures fund flows

Bankera continues operating crypto banking services and maintains social media presence, though its credibility appears severely damaged by these allegations.

Lessons for Crypto Investors

This case serves as a cautionary tale with several key takeaways:

• Due diligence matters: Research teams and their track records thoroughly
• Watch for red flags: Offshore banking arrangements warrant extra scrutiny
• Diversify: Never over-allocate to any single project, especially in ICOs
• Regulation isn’t always bad: Some oversight can protect against bad actors

As the crypto industry matures, cases like Bankera’s may become less common, but they underscore the importance of investor vigilance in this rapidly evolving space.