An explosive investigation by the Organized Crime and Corruption Reporting Project (OCCRP) has uncovered serious allegations against the co-founders of Bankera, a Lithuanian-based crypto fintech firm.
Vytautas Karalevičius, Justas Dobiliauskas, and Mantas Mockevičius are accused of embezzling nearly $57 million of the $114 million raised during their 2018 Initial Coin Offering (ICO).
The investigation reveals that almost half of the funds were funneled through a Vanuatu-based bank, which the founders had allegedly acquired using the ICO proceeds.
From there, the funds were redirected to develop a portfolio of luxurious properties, including a villa on the French Riviera and premium real estate in Lithuania.
Vanuatu Bank Allegedly Used as a Financial Conduit for Embezzlement
According to leaked internal documents and banking records obtained by OCCRP, the Vanuatu bank, purchased and controlled by the Bankera founders, was used as a conduit to issue multi-million-euro loans to businesses they personally owned.
These loans were reportedly used to build and acquire luxury assets in Europe, suggesting a sophisticated effort to siphon investor funds from Bankera’s ICO under the guise of legitimate financial operations.
The use of an offshore financial institution raised further suspicion, as it provided a layer of opacity that could shield illicit transfers from regulators and investors.
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Promised Deliverables Never Materialized, Investors Left Empty-Handed
While Bankera initially promised investors dividends through its BNK token and the future development of a fully licensed banking institution, none of these pledges came to fruition.
The dividend program was abruptly halted in 2022, and the banking license that had been central to the project’s pitch remains unfulfilled.
The recent development has further eroded confidence among early investors, many of whom now suspect that the ICO was used more as a fundraising scheme for personal enrichment than for the development of a fintech platform.
As of now, the fully diluted market capitalization of BNK tokens stands at a mere $976,000, down drastically from the project’s original valuation.
Legal Defense Pushes Back, But Public and Regulatory Scrutiny Grows
Despite mounting evidence and public outcry, lawyers representing the founders have denied any wrongdoing or fraudulent behavior.
However, the severity of the accusations and the detailed financial trail outlined by OCCRP have placed the founders under growing scrutiny from international observers and potentially law enforcement agencies.
The revelations raise broader questions about regulatory oversight in the ICO boom era and highlight the need for increased accountability and investor protections within the cryptocurrency sector.
As the story unfolds, further legal or financial repercussions for the Bankera founders may be on the horizon.
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