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

Introduction

Did the founders of Bankera, a crypto fintech firm, misuse millions from their 2018 ICO to buy luxury properties worldwide? A recent investigation by the Organized Crime and Corruption Reporting Project (OCCRP) suggests just that. The report alleges that nearly half of the €100 million ($114 million) raised was funneled into a Vanuatu bank owned by the founders, later used to finance high-end real estate acquisitions. Here’s what we know.

The Allegations: How ICO Funds Were Redirected

According to leaked company records and bank statements obtained by the OCCRP, Bankera’s founders—Vytautas Karalevičius, Justas Dobiliauskas, and Mantas Mockevičius—transferred a significant portion of ICO proceeds to a bank they purchased in Vanuatu, a Pacific Island nation known for its lax financial regulations.

The funds were reportedly used to:

• Issue multi-million-euro loans to shell companies owned by the founders.
• Purchase a villa in the French Riviera and premium real estate in Lithuania.
• Provide personal loans to the founders for undisclosed expenses.

Lawyers for the trio denied fraud but refused to address specific transactions. Bankera has yet to respond to Cointelegraph’s request for comment.

Bankera’s Broken Promises

Bankera’s 2018 ICO marketed the BNK token as a gateway to a revolutionary “bank for the blockchain era.” Investors were lured by promises of:

• Weekly BNK payouts tied to revenue sharing.
• Discounted rates on banking services.
• A future EU banking license.

However, the reality fell short:

• Revenue-sharing payments dwindled and were axed in 2022.
• The EU license never materialized.
• BNK’s market cap collapsed to under $1 million—a 99% drop from its ICO valuation.

The Wider Implications for Crypto Crowdfunding

This case underscores systemic risks in ICOs:

• Lack of Accountability: Funds raised via tokens often bypass traditional investor protections.
• Regulatory Arbitrage: Using offshore entities (like Vanuatu banks) can obscure fund trails.
• Overpromising: Projects like Bankera exploit hype cycles to attract capital without deliverables.

Conclusion: A Cautionary Tale for Crypto Investors

The Bankera saga highlights the need for:

• Diligence: Scrutinize teams claiming to “disrupt finance” without proven track records.
• Regulation: Policymakers must close loopholes enabling offshore fund diversion.
• Transparency: Projects should face audits if handling nine-figure sums.

For now, Bankera’s social media remains active—but its investors are left holding near-worthless tokens while its founders allegedly enjoy luxury villas. A stark reminder that in crypto, if it sounds too good to be true, it usually is.