Bankera Co-Founders Accused of Misusing 45% of 100 Million Euro ICO Funds for Luxury Real Estate

Bankera, a cryptocurrency fintech firm, has been accused of misusing funds from its 2018 initial coin offering (ICO) to purchase luxury properties worldwide. According to a report, nearly half of the 100 million euro ($114 million) raised from the ICO was transferred to a bank in Vanuatu, which was acquired by the project’s founders, Vytautas Karalevičius, Justas Dobiliauskas, and Mantas Mockevičius. The bank reportedly issued millions of euros in loans to companies owned by the trio to build a luxury real estate portfolio, including a villa in the French Riviera and high-end properties in Lithuania.

The leaked records and statements show that the funds were used to underwrite loans to other companies, which were then used to purchase high-end real estate. The Vanuatu bank also loaned millions more directly to the three founders for “personal use.” Lawyers representing the founders denied that the ICO was fraudulent but declined to comment on specific transactions. Bankera had pledged to become the “bank for the blockchain era,” offering a suite of retail and institutional investment services while holding and exchanging most of the largest cryptocurrencies. Many investors were attracted to the Bankera (BNK) token ICO by the promise of discounted rates on Bankera’s services and products, along with the opportunity to earn weekly BNK payouts. However, an investor in Bankera’s ICO reported that those weekly payouts began to “drop significantly below the promised amount.” The revenue-sharing scheme was reportedly halted in 2022. Bankera also promised to obtain a European Union banking license, which is yet to materialize. Despite the 100 million euro ICO raise, the fully diluted value of the BNK token is currently at a significantly lower value.

Bankera continues to provide crypto-related banking services and maintains an active social media presence. The co-founders of Bankera, a once-promising cryptocurrency project, have been exposed for misusing tens of millions of investor funds from their BNK token Initial Coin Offering (ICO) to personally finance luxury real estate. Bankera, which was marketed as the future of blockchain banking, raised over €100 million in its 2017/18 ICO, promising investors weekly returns of 20% from its own and crypto exchange SpectroCoin’s revenue. However, the value of BNK quickly plummeted, and payments to more than 100,000 investors either stalled or stopped entirely, leading to significant losses for many. Seven years later, Bankera has failed to secure an EU banking license.

An international investigation uncovered that tens of millions of ICO funds were funneled into Pacific Private Bank (PPB) in Vanuatu, a bank owned by Bankera’s three co-founders. These funds were then used to finance loans to companies owned by the same founders, which subsequently purchased luxury real estate, including a villa on the French Riviera and high-end properties in Lithuania. The co-founders employed a complex structure across multiple jurisdictions to manage ICO funds. Finalify Ltd. in the British Virgin Islands issued the BNK tokens, while Spectro Finance, operated the SpectroCoin exchange. Pervesk, managed ICO funds for Spectro Finance. In January 2018, just before the ICO ended, the three founders acquired Pacific Private Bank Ltd (PPB) in Vanuatu, a tax haven known for its “golden passport” program. Leaked records show PPB borrowed funds from companies linked to Bankera, including Spectro Finance, Finalify, and Spectro Finance Systems. These funds were then lent to the Bankera founders and other companies they controlled. Millions were used to purchase luxury properties, including a villa on the French Riviera, high-end properties in Lithuania, and beach resorts in Vanuatu. PPB also loaned millions directly to the founders, who later became Monaco residents, with loans often marked as “personal purposes.”

The investigation revealed that over 45 million euros were transferred from SpectroCoin’s account at PPB. In response, Lithuania’s Chief Prosecutor has ordered a review to decide whether a pre-trial investigation into Bankera’s co-founders is needed. The diversion of millions in investor funds to personal luxury assets, including real estate, raises serious concerns of fraud and unethical financial practices. This incident underscores the risks associated with investing in cryptocurrency projects and the importance of regulatory oversight in the industry.