Bankera Founders Buy Global Properties with ICO Funds
Bankera Founders Accused of Misusing ICO funds for Luxury Property
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The founders of crypto firm Bankera allegedly used funds raised from its initial coin offering (ICO) in 2018 to purchase luxury properties around the globe,according to a report by the Organized Crime and Corruption Reporting Project (OCCRP).
The OCCRP reported April 28 that nearly half of the 100 million euros ($114 million) raised during Bankera’s ICO was transferred to a bank in Vanuatu, a Pacific island nation.The report cited company records and bank extracts. The bank was reportedly acquired by Bankera founders Vytautas Karalevius, Justas Dobiliauskas, and Mantas Mockevičius.
According to the OCCRP,the Vanuatu bank subsequently provided millions of euros in loans to companies owned by the three founders. These funds were allegedly used to build a luxury real estate portfolio, including a villa on the French Riviera and high-end properties in Lithuania, where bankera was founded.
The OCCRP report indicated that the records and extracts suggest the funds were used to secure loans for other companies, which then acquired the luxury real estate.
The Vanuatu bank also reportedly lent millions directly to the three founders for “personal use,” according to the OCCRP.
Lawyers representing the founders reportedly denied the ICO was fraudulent but declined to comment on specific transactions.
Bankera did not immediately respond to a request for comment.
Bankera’s Unfulfilled Promises
Bankera marketed itself as the “Bank of the Blockchain era,” promising a suite of retail and institutional investment services, including cryptocurrency holding and exchange services.
The Bankera ICO attracted investors with promises of discounts on Bankera services and weekly payments in Bankera tokens (BNK).
Though,one Bankera ICO investor told the OCCRP that the weekly payments “fell considerably below the promised amount.”
Reports indicate that the income distribution scheme ceased in 2022.
Bankera also pledged to obtain a banking license from the European Union, a promise that has not been fulfilled.
Despite raising 100 million euros in its ICO, the total diluted value of the BNK token is currently $975,710, according to data from CoinGecko.
Bankera continues to offer cryptocurrency-related services and maintains a presence on LinkedIn and X.
Bankera ICO Controversy: A Q&A Guide
What is Bankera and What is the Current Controversy?
Q: What is Bankera?
Bankera is a cryptocurrency firm that initially launched through an Initial coin Offering (ICO) in 2018. it aimed to be a “Bank of the Blockchain era” offering various cryptocurrency-related services. The project attracted investment with promises of future services and token rewards.
Q: What is the main issue surrounding Bankera?
The core issue is the alleged misuse of funds raised during Bankera’s 2018 ICO, specifically for purchasing luxury properties. A report by the Organized Crime and Corruption Reporting Project (OCCRP) implicated the founders in using ICO funds for personal gain.
Q: Where did the OCCRP get its information?
The OCCRP’s findings were based on company records and bank extracts.
The Allegations: ICO Funds and Luxury Real Estate
Q: What is the alleged misuse of funds?
The OCCRP reports that bankera’s founders allegedly used funds from the ICO to buy luxury properties globally.
Q: How much money was raised in the ICO?
Bankera’s ICO raised approximately 100 million euros (about $114 million).
Q: Where was the money transferred?
Nearly half of the ICO funds were transferred to a bank located in Vanuatu, a Pacific island nation.
Q: Who acquired the bank in Vanuatu?
The bank in Vanuatu was reportedly acquired by Bankera’s founders: vytautas Karalevius, Justas Dobiliauskas, and Mantas Mockevičius.
Q: How were the funds used from the Vanuatu bank?
the Vanuatu bank allegedly provided millions of euros in loans to companies owned by the founders. These funds were reportedly used to build a luxury real estate portfolio.
Q: What kind of properties were purchased?
The real estate portfolio reportedly included:
A villa on the French Riviera
High-end properties in Lithuania
Q: Did the founders also borrow money for personal use?
Yes,the OCCRP also reported that the Vanuatu bank directly lent millions to the three founders for personal use.
Q: How have the founders responded to these allegations?
Lawyers representing the founders have denied that the ICO was fraudulent but have declined to comment on specific transactions. Bankera itself did not immediately respond to requests for comment.
Bankera’s unfulfilled Promises
Q: What services did Bankera promise to offer?
Bankera promised a suite of retail and institutional investment services, including:
Cryptocurrency holding
Cryptocurrency exchange services
Q: Were there other promises made to investors?
Yes, investors were offered:
Discounts on bankera services
Weekly payments in Bankera tokens (BNK)
Q: Were the promised weekly payments fulfilled?
No.One Bankera ICO investor told the OCCRP that the weekly payments “fell considerably below the promised amount.” The income distribution scheme ceased in 2022.
Q: Did Bankera ever obtain a banking license?
No, Bankera pledged to obtain a banking license from the european Union, but this promise was not fulfilled.
The Current Status of Bankera
Q: What is the value of the BNK token now?
The total diluted value of the BNK token is currently $975,710, according to CoinGecko data.
Q: Is Bankera still operational?
Yes, Bankera continues to offer cryptocurrency-related services and maintains a presence on LinkedIn and X (formerly Twitter).
Q: What can investors expect from Bankera now?
Given the unfulfilled promises and allegations, investors shoudl approach bankera with caution and conduct thorough due diligence before engaging with their services.