The creators of the crypto fintech company Bankera are under scrutiny for allegedly misappropriating funds from their initial coin offering (ICO) in 2018 to acquire high-end real estate globally, according to a recent report by the Organized Crime and Corruption Reporting Project (OCCRP).
On April 28, the OCCRP reported that nearly half of the €100 million (approximately $114 million) raised from Bankera’s ICO was sent to a bank in Vanuatu. This bank was reportedly acquired by Bankera’s founders: Vytautas Karalevičius, Justas Dobiliauskas, and Mantas Mockevičius.
Bankera Founders Allegedly Used ICO Funds for Real Estate Investments
The report claims that the Vanuatu bank subsequently loaned millions of euros to companies affiliated with the founders, allowing them to create a luxury real estate portfolio, which includes a villa in the French Riviera and premium properties in Lithuania, the birthplace of Bankera.
Leaked documents apparently reveal that money was channeled through loans to related businesses and directly to the founders for personal expenses.
While the founders’ lawyers denied any fraudulent activity related to the ICO, they did not address the specific transactions in question.
Bankera had marketed itself as the “bank for the blockchain era,” providing services like crypto storage, trading, and investment options.
Its ICO attracted investors with promises of reduced rates and weekly returns in BNK tokens.
However, one investor informed OCCRP that the payouts “significantly dropped below the promised amount” before the revenue-sharing scheme was terminated completely in 2022.
The firm also assured investors that it would obtain a European Union banking license, a promise that remains unfulfilled.
Despite raising €100 million in the ICO, the present fully diluted market value of Bankera’s BNK token is only about $975,710, as per CoinGecko data.
Bankera is still operational, providing crypto-related financial services and maintaining a notable presence on LinkedIn, as well as a lesser one on X (formerly Twitter).
These recent allegations have raised serious questions regarding accountability and transparency in the crypto fundraising landscape.
SEC Dismisses Dragonchain Crypto Lawsuit Over ICO
Last week, the SEC filed a joint request with blockchain company Dragonchain to terminate its ongoing legal action against the firm.
The SEC initially took legal steps against Dragonchain in August 2022, accusing them and their affiliates of conducting an unregistered securities offering via their 2017 ICO.
Under former Chair Gary Gensler, the SEC aggressively pursued many crypto projects, asserting that numerous digital assets were unregistered investment securities.
However, following President Donald Trump’s reelection and Gensler’s exit, the SEC has revised its approach to cryptocurrency regulation.
The newly established Crypto Task Force has focused on clarifying which digital assets fall outside its scope, recently indicating that most meme coins are not categorized as securities.
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