ICO raises 100 million euros, nearly half goes to Vanuatu bank controlled by founder
The founder of crypto fintech company Bankera has been accused of misappropriating funds raised from its 2018 initial coin offering (ICO) to purchase luxury properties around the world, according to an investigative report published by the Organized Crime and Corruption Reporting Project (OCCRP) on April 28.
Citing leaked company records and bank statements, OCCRP said nearly half of the €100 million ($114 million) raised by Bankera in its ICO was transferred to a bank in the Pacific island nation of Vanuatu, which was purchased by project founders Vytautas Karalevičius, Justas Dobiliauskas and Mantas Mockevičius.
Image source: Bankera The three founders of Bankera
Vanuatu banks then reportedly began lending millions of euros to companies owned by the trio to build a luxury real estate portfolio, including villas on the French Riviera and high-end properties in Lithuania, where the project was founded.
Leaked records and statements show that the funds were used to guarantee loans for other companies, which were then used to purchase high-end real estate. According to the OCCRP report, Vanuatu banks also loaned millions of euros directly to the three founders for “personal use.” Lawyers representing the founders reportedly denied that the ICO was a fraud but declined to comment on specific transactions.
Source: OCCRP Vanuatu Bank also directly loaned millions of euros to the three founders for "personal use"
Promising to be the "bank of the blockchain era", actual services have shrunk significantly
Bankera has promised to be “the bank for the blockchain age,” offering a range of retail and institutional investment services while holding and exchanging most major cryptocurrencies. Many investors were attracted to the Bankera ($BNK) token ICO because it promised discounted rates on Bankera services and products, as well as the opportunity to receive weekly $BNK payouts. However, one Bankera ICO investor told OCCRP that these weekly payments began to “fall significantly below the amounts promised.” This revenue-sharing program was reportedly suspended in 2022.
Bankera also promised to obtain an EU banking license, but this has yet to happen. Although the ICO raised €100 million, the fully diluted value of $BNK tokens is currently just $974,811 according to CoinGecko, a significant drop from the expectations of initial investors. Despite this, Bankera continues to provide cryptocurrency-related banking services and maintains an active social media presence on LinkedIn and X.
Image source: Coingecko The fully diluted value of $BNK tokens is currently only $974,811
Crypto-financial regulation is lacking, and investor protection mechanisms need to be strengthened
The incident highlights the lack of regulation in the cryptocurrency industry, especially with regard to the ICO financing model. Between 2017 and 2018, the ICO craze swept the world, with many projects promising revolutionary blockchain solutions but ultimately failing to deliver on their promises. The Bankera case has reignited the discussion on investor protection mechanisms, especially in relation to cross-border financial operations.
The founders chose to set up a bank in Vanuatu, where regulations are relatively lax, and transferred funds through a complex loan structure. This operation raised questions about the transparency of the use of ICO funds.
Source: OCCRP Bankera founder issued millions of euros in loans to companies owned by three people through Vanuatu Bank to buy luxury villas on the French Riviera
While Bankera is still operating, a sharp drop in the value of its token and unfulfilled promises have disappointed many early backers. Experts point out that cases like Bankera highlight the need for stricter regulatory frameworks and more transparent use of funds in the crypto-financial industry to protect investors from potential misconduct.
As regulators around the world step up their scrutiny of the cryptocurrency industry, the Bankera case could serve as a catalyst for tighter regulation, particularly for crypto businesses that promise to provide traditional financial services. For investors, this incident is also a warning that they need to be more cautious when participating in cryptocurrency investments, especially for projects that promise excessively high returns or quickly obtain regulatory approvals.
This article is generated by Crypto Agent by aggregating information from various parties, and is reviewed and edited by (Crypto City). It is still in the training stage and may contain logical deviations or information errors. The content is for reference only and should not be regarded as investment advice.
Investors’ dreams shattered? Crypto company Bankera was exposed for misappropriation of funds, and the money was used to buy luxury houses! 』This article was first published in "Crypto City"