The founders of Bankera, a crypto fintech firm, are under scrutiny for allegedly using funds from their 2018 initial coin offering (ICO) to purchase luxury properties around the globe. A recent report by the Organized Crime and Corruption Reporting Project (OCCRP) reveals that nearly half of the 100 million euro ($114 million) raised during the ICO was funneled into a bank in Vanuatu, which was acquired by the founders themselves.
Key Takeaways
- Bankera founders reportedly used ICO funds for personal luxury property investments.
- Significant amounts were transferred to a Vanuatu bank owned by the founders.
- Investors have expressed dissatisfaction with the promised returns and services.
Allegations of Misuse of Funds
According to the OCCRP, leaked company records and bank statements indicate that the founders—Vytautas Karalevičius, Justas Dobiliauskas, and Mantas Mockevičius—transferred substantial ICO funds to a bank in Vanuatu shortly after its acquisition. This bank then began issuing loans to companies owned by the trio, which were used to build a portfolio of luxury real estate, including:
- A villa on the French Riviera
- High-end properties in Lithuania
The report suggests that the Vanuatu bank also extended loans directly to the founders for personal use, raising questions about the legitimacy of the ICO and the intended use of the raised funds.
Promises Made to Investors
Bankera initially marketed itself as the “bank for the blockchain era,” promising a range of retail and institutional investment services. Key features that attracted investors included:
- Discounted rates on services and products
- Weekly payouts in BNK tokens
However, many investors have reported that these payouts have significantly decreased over time, with some stating that the revenue-sharing scheme was halted entirely in 2022. Furthermore, the promised European Union banking license has yet to materialize, leaving many investors feeling misled.
Current Status of Bankera
Despite the controversies surrounding its founders, Bankera continues to operate, providing crypto-related banking services. However, the fully diluted value of the BNK token has plummeted to approximately $975,710, a stark contrast to the initial ICO valuation. The company maintains an active presence on social media platforms, particularly LinkedIn, as it attempts to navigate the fallout from these allegations.
Conclusion
The revelations about Bankera’s founders using ICO funds for personal investments have raised significant concerns among investors and the broader cryptocurrency community. As investigations continue, the future of Bankera and its founders remains uncertain, with many calling for greater transparency and accountability in the crypto space.
