Nikolas Sargeant
The founders of crypto fintech company Bankera are facing serious allegations of misappropriating funds raised during their 2018 initial coin offering (ICO), according to an explosive investigation by the Organized Crime and Corruption Reporting Project (OCCRP).
The April 28 report, backed by leaked company records and bank statements, claims that Vytautas Karalevičius, Justas Dobiliauskas, and Mantas Mockevičius transferred nearly half of the €100 million ($114 million) raised to a bank in Vanuatu that they had personally acquired.
The investigation details how this offshore banking arrangement allegedly served as a financial conduit for the founders' personal enrichment while investors saw the value of their tokens plummet to a fraction of the initial investment.
Luxury Property Empire Built with Investor Funds
According to the OCCRP investigation, the Vanuatu bank functioned as a crucial intermediary, issuing millions of euros in loans to companies controlled by the three founders. These funds reportedly financed an impressive real estate portfolio including a villa on the prestigious French Riviera and high-end properties in their native Lithuania.
The leaked financial records reportedly document a pattern of systematic fund diversion through related-party loans and direct transfers marked for "personal use" by the founders.
When approached for comment, legal representatives for the founders denied allegations of fraud related to the ICO but notably declined to address specific financial transactions identified in the report.
Bankera had marketed itself as the "bank for the blockchain era," promising investors discounted services, weekly revenue distributions through BNK tokens, and plans to secure a European Union banking license. Despite these ambitious commitments, one investor told investigators that dividend payments "dropped significantly below the promised amount" before being completely discontinued in 2022.
The stark contrast between fundraising success and current market reality is evident in Bankera's token valuation. Despite raising €100 million during its ICO, CoinGecko data shows the fully diluted market value of BNK tokens has collapsed to just $975,710.
Regulatory Climate Shifts as SEC Abandons Dragonchain ICO Case
In a development highlighting the evolving regulatory landscape for crypto projects, the Securities and Exchange Commission recently filed a joint motion with blockchain company Dragonchain to dismiss its lawsuit over the company's 2017 ICO.
The SEC had originally charged Dragonchain in August 2022 with conducting an unregistered securities offering, part of former Chair Gary Gensler's aggressive enforcement campaign against cryptocurrency ventures.
The regulatory environment has significantly shifted following President Donald Trump's reelection and Gensler's subsequent departure. The newly established Crypto Task Force has focused on clarifying regulatory boundaries, recently determining that most meme-based tokens fall outside the SEC's jurisdiction.
While Bankera continues to operate its crypto-focused financial services with an active presence on professional networks, the OCCRP's findings raise troubling questions about accountability in cryptocurrency fundraising mechanisms.
