Bankera Founders Used ICO Funds for Luxury Properties, Report Shows

Bankera founders used ICO funds on global property buys: Report

  • Bankera’s founders allegedly used funds from a €100 million ICO to purchase luxury properties through a bank they owned in Vanuatu.
  • Nearly half of the ICO funds were transferred to the Vanuatu bank, which then issued millions in loans to companies owned by the founders.
  • Despite promises of becoming a “bank for the blockchain era” with EU licenses, Bankera has failed to deliver many of its commitments to investors.

The founders of Lithuanian crypto firm Bankera have allegedly misappropriated funds from their 2018 initial coin offering (ICO) to acquire luxury real estate around the world, according to an investigation by the Organized Crime and Corruption Reporting Project (OCCRP). The report, published April 28, reveals that nearly half of the €100 million ($114 million) raised was funneled through a bank in Vanuatu owned by the founders themselves.

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The OCCRP investigation, based on leaked company records and bank statements, claims that Vytautas Karalevičius, Justas Dobiliauskas, and Mantas Mockevičius transferred a significant portion of investor funds to their Vanuatu bank. Shortly thereafter, the bank began issuing millions in loans to companies controlled by the trio, reportedly financing purchases of high-end properties including a villa on the French Riviera and premium real estate in Lithuania.

Personal Loans and Denied Allegations

According to the leaked documents, the Vanuatu bank not only funded companies for real estate purchases but also provided millions directly to the three founders for "personal use." When approached about these allegations, lawyers representing the founders denied that the ICO was fraudulent but declined to address specific transactions mentioned in the report.

The BNK token, which once raised €100 million, now has a fully diluted value of only $975,710, according to CoinGecko data. Meanwhile, the company continues to operate, providing crypto-related banking services and maintaining an active presence on LinkedIn and X.

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Broken Promises to Investors

Bankera marketed itself as the "bank for the blockchain era," promising comprehensive retail and institutional investment services with support for major cryptocurrencies. Investors were attracted by discounted rates on future services and weekly BNK token payouts based on revenue-sharing.

However, one investor told OCCRP that the promised weekly payouts "dropped significantly below the promised amount" before being completely halted in 2022. The company also failed to obtain a promised European Union banking license, which was a key selling point during the ICO.

This case highlights the risks associated with ICO investments during the 2017-2018 boom period, when regulatory oversight was minimal and investors had limited protections against fraudulent projects.

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