The founders of crypto fintech firm Bankera are facing allegations of misusing funds from their 2018 initial coin offering (ICO) to finance the purchase of luxury properties around the world, according to a new report by the Organized Crime and Corruption Reporting Project (OCCRP).The OCCRP reported on April 28, citing leaked company records and bank statements, that nearly half of the €100 million ($114 million) raised during Bankera’s ICO was transferred to a bank in Vanuatu.The institution had been purchased by Bankera’s founders, Vytautas Karalevičius, Justas Dobiliauskas, and Mantas Mockevičius.Bankera Founders Used ICO Funds to Build Real Estate PortfolioThe report alleges that the Vanuatu bank then issued millions of euros in loans to companies owned by the trio, enabling them to build a portfolio of luxury real estate, including a villa on the French Riviera and upscale properties in Lithuania, where Bankera was originally founded.The leaked documents reportedly show that funds were funneled through loans to related companies and directly to the founders for “personal use.”Lawyers for the founders denied that the ICO was fraudulent but declined to address specific transactions.Bankera had promoted itself as the “bank for the blockchain era,” offering services such as crypto holding, trading, and investment products.Its ICO attracted investors with promises of discounted rates and weekly payouts in BNK tokens.However, one investor told the OCCRP that the payouts quickly “dropped significantly below the promised amount” before the revenue-sharing program was halted entirely in 2022.The company also pledged to secure a European Union banking license, a promise that has yet to materialize.Despite raising €100 million during its ICO, the fully diluted market value of Bankera’s BNK token now stands at just $975,710, according to CoinGecko data.Bankera remains active, offering crypto-related financial services and maintaining a visible presence on LinkedIn and, to a lesser extent, X (formerly Twitter). This week our team is attending @icegamingglobal conference in Barcelona, Spain. If you are around come and meet us at our stand 5F47 to learn more about our offerings for #iGaming businesses!#ICE25 pic.twitter.com/4Bu4vLSprz— Bankera (@Bankeracom) January 20, 2025 The latest allegations, however, raise new concerns about accountability and transparency within the crypto fundraising ecosystem.SEC Drops Dragonchain Crypto Lawsuit Over ICOLast week, the SEC filed a joint motion with blockchain company Dragonchain to dismiss its ongoing lawsuit against the firm.The SEC originally launched legal action against Dragonchain in August 2022, accusing the firm and its affiliates of conducting an unregistered securities offering through their 2017 initial coin offering (ICO).Under former Chair Gary Gensler, the SEC pursued aggressive enforcement actions against numerous crypto projects, asserting that many digital assets qualified as unregistered investment securities.However, with President Donald Trump’s reelection and Gensler’s departure, the SEC has softened its stance on cryptocurrency regulation.The newly formed Crypto Task Force has focused on clarifying which digital assets fall outside the agency’s jurisdiction, recently stating that most meme coins are not considered securities.The post Bankera Founders Accused of Using ICO Funds to Buy Luxury Properties Worldwide appeared first on Cryptonews.

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