Bankera ICO Scandal: Global Property Buys Exposed in Report

Bankera Founders Purchased Luxury Properties with ICO Funds: Report

The founders of the crypto fintech firm Bankera allegedly used funds from the project's 2018 initial coin offering to buy luxury properties around the world, as per a report by the Organized Crime and Corruption Reporting Project.

The OCCRP stated on April 28, based on leaked company records and bank statements, that almost half of the funds from Bankera's 100 million euro ($114 million) ICO were transferred to a bank in Vanuatu, an island nation in the Pacific, which was acquired by the project's founders Vytautas Karalevičius, Justas Dobiliauskas, and Mantas Mockevičius.

Following this, the Vanuatu bank purportedly started granting millions of euros in loans to companies owned by the three individuals to create a luxury real estate portfolio. This portfolio included a villa in the French Riviera and high-end property in Lithuania, where the project originated.

The leaked records show that the funds were utilized to support loans to other companies, which were then used to purchase upscale real estate. Additionally, the Vanuatu bank reportedly lent millions directly to the founders for personal use, as stated in the OCCRP report.

The founders' lawyers have refuted claims that the ICO was a scam but declined to provide details on the specific transactions. Cointelegraph reached out to Bankera for a statement, but there was no immediate response.

Bankera's Unfulfilled Promises

Bankera had committed to being the "bank for the blockchain era," offering a range of retail and institutional investment services while supporting and trading most major cryptocurrencies.

Many investors were enticed by the Bankera (BNK) token ICO with prospects of discounted rates on the platform's offerings and products, along with the chance to receive weekly BNK payouts.

However, an investor in Bankera's ICO informed the OCCRP that the weekly payouts started to decrease significantly below the promised amount. The revenue-sharing scheme was reportedly discontinued in 2022.

Bankera had also assured investors of acquiring a European Union banking license, which is yet to materialize. Despite raising 100 million euros in the ICO, the fully diluted value of the BNK token currently stands at $975,710, as per CoinGecko data.

Bankera continues to provide crypto-related banking services and maintains an active presence on social media platforms like LinkedIn.