Blocktrade: From former crypto hopeful to permanent maintenance mode
From the eCredits promise to changes in ownership and the open questions of a project whose processing is far from complete.
An assessment of the current situation of Blocktrade and the role of Sam Tan
Blocktrade was once considered the central trading platform of an ambitious crypto ecosystem. Thousands of sales partners from the Lyoness, Lyconet, and later myWorld networks promoted the conversion of Shopping Points into eCredits and the opening of Blocktrade accounts. Investors were given high expectations for the future development of eCredits and the emerging blockchain ecosystem. Today, the picture is fundamentally different: The platform has been in maintenance mode for some time, the former operating company in Estonia no longer exists, control now lies with a company in Singapore, and the original corporate structure has been fundamentally reshaped through numerous restructurings, changes of ownership, and organizational changes.
For many affected parties, the question is no longer simply when Blocktrade will resume operations. The focus is now on who is responsible for past decisions, against which companies or individuals potential claims can still be pursued, and what assets remain within the repeatedly altered corporate structure. The more frequently companies, board members, and international responsibilities change, the more complex and time-consuming it becomes to reconstruct historical responsibilities. This translates into a significantly higher workload for insolvency administrators, investigating authorities, and claimants.
The platform will remain in maintenance mode.
Anyone accessing the Blocktrade platform today is simply redirected to a maintenance page. It’s impossible to pinpoint exactly how long this situation has persisted based on publicly available sources. However, it’s clear that regular trading activity has been publicly unobservable for quite some time.
A concrete timetable for the resumption of operations or a detailed explanation to customers and investors has not yet been published.
Thoroughly failed capital market ambitions
Blocktrade pursued ambitious growth plans for years. Various company documents communicated international expansion, capital measures, and long-term stock market prospects.
Despite extensive prospectuses, share issues and strategic announcements, Blocktrade did not develop into the promised European crypto trading platform.
Instead, the following followed:
- extensive restructuring,
- Change of ownership
- Changes in corporate management,
- as well as a significant reduction in public communication.
The original growth targets do not appear to have been achieved, at least not yet.
A complete change of control
In September 2024, control of Blocktrade SA changed completely.
According to the published prospectus documents, the Singaporean FSR Group Pte. Ltd. has since held all voting Class A shares of the company.
The sole owner of the FSR Group is Su-Leng Tan Lee, better known as Sam Tan.
This means that Sam Tan now indirectly controls Blocktrade completely.
In parallel, he took on a role on the board of directors of Blocktrade SA.
Sam Tan – a central figure with little public communication
Sam Tan is not an unknown figure.
In addition to his role at Blocktrade, he is also Chief Executive Officer, President and Director of BioNexus Gene Lab Corp., which is listed on the NASDAQ.
This means he simultaneously bears responsibility for a publicly listed US company and for the strategic development of Blocktrade.
It is all the more remarkable, therefore, that very few public statements have been published so far regarding the future development of Blocktrade.
In particular, there is a lack of verifiable information about this.
- when the platform is expected to be fully operational again,
- which company will operate the trading business in the future,
- how the regulatory structure is designed,
- as well as what strategic goals Blocktrade will pursue in the future.
Investors and customers in particular are likely to have a legitimate interest in transparent communication.
Critical audit opinion on the previous annual financial statements
The published 2022 annual financial statements deserve special attention.
HACA Partners S.à rl was appointed as the statutory auditor. However, the auditor refused to issue an unqualified audit opinion and instead issued a so-called “Disclaimer of Opinion”.
According to the published prospectus documents, this was primarily due to Blocktrade’s inability to provide sufficient evidence of the value of significant intangible assets. This mainly affected the cryptocurrency trading platform, including the underlying software and rights, with a book value of approximately €3.23 million.
The auditor explicitly stated that he was unable to assess whether this asset had been correctly valued or whether a significant valuation adjustment would have been necessary.
This is of considerable importance, especially for a technology-oriented company.
The trading platform represents the economic core of the business model. If its value cannot be sufficiently demonstrated, this inevitably impairs the informative value of the entire annual financial statements and makes a reliable assessment of the economic situation more difficult.
Notable development in the company structure
The company structure has also changed significantly within a short period of time.
The former operating company BlocktradeOperations OÜ lost its Estonian VASP license and was later dissolved.
At the same time, control of Luxembourg-based Blocktrade SA was completely transferred to the FSR Group.
This inevitably raises the question of which company actually takes over the operational platform management today and on what regulatory basis this takes place.
We have not yet been able to find a clear public statement on this matter.
Claims and ongoing proceedings
The investigation is no longer limited to journalistic research. BE Conflict Management is aware that claims for reimbursement have already been filed on behalf of affected investors. Corresponding out-of-court and court proceedings are already underway or pending.
Regardless of the outcome of the respective legal proceedings, the developments to date continue to raise fundamental questions. In particular, it remains of interest how Blocktrade assesses the asserted claims, what position the company takes on them, and how it intends to shape the future development of the platform as well as its communication with investors and customers.
Against this background, we have requested a statement from Blocktrade as part of our research. We will, of course, fully consider the company’s response and incorporate it into our further reporting.
Open questions for Blocktrade
Before concluding our research, we asked Blocktrade for a statement.
We would particularly like you to answer the following questions:
- Who actually operates the trading platform today?
- Which company is the customer’s contractual partner?
- How many employees does Blocktrade currently employ?
- Is the Luxembourg address used for operational purposes?
- When will the platform be fully operational again?
- How does the company assess the critical audit opinion on the 2022 financial statements?
- What future strategy is Blocktrade pursuing after the extensive restructuring?
On-site research in Luxembourg
As part of our research, we visited the Luxembourg addresses listed in the company documents.
No clearly identifiable operational presence of the company could be established at the currently registered business address.
This does not necessarily mean that no business operations take place there. Companies can also maintain their registered office through domiciliation or corporate service providers.
However, in light of the extensive restructuring, it would be helpful for the company to clarify whether Blocktrade maintains its own offices and staff at this address or whether the administration is organized differently.
Conclusion
Blocktrade still exists as a legal entity. At the same time, publicly available documents reveal a company that has fundamentally changed in recent years.
The platform’s long-term maintenance mode, the change of ownership, the replacement of key board members, the discontinued operating company in Estonia, and the critical audit opinion on the 2022 financial statements raise questions that have so far only been partially answered.
Against this backdrop, transparent communication with customers, investors and the public seems more important than ever.
Should Blocktrade respond to our press inquiry, we will of course fully consider their statement and supplement this article accordingly.
A notice:
This article is based on publicly available sources, documented user reports, and editorial analysis. It serves to inform the public and is protected by the freedom of the press and expression guaranteed by Article 5 of the German Basic Law, Article 10 of the European Convention on Human Rights, and Article 85 of the GDPR. Facts and opinions have been carefully separated and clearly marked.
Sources:
- Blocktrade SA (Luxembourg): Prospectus and Prospectus Supplements (2023–2025)
- Blocktrade SA: Annual Financial Statements 2022 including audit report by HACA Partners S.à rl
- Published corporate governance and company documents of Blocktrade SA
- Published information from FSR Group Pte. Ltd.
- Published information from BioNexus Gene Lab Corp. (NASDAQ)
- Luxembourg Business Registers (LBR)
- Estonia e-Business Register
- Accounting and Corporate Regulatory Authority (ACRA), Singapore
- US Securities and Exchange Commission (SEC) – EDGAR database
- Blocktrade – Company website
- Blocktrade – Press Releases
- Blocktrade – Help Center and Status Messages
- BioNexus Gene Lab Corp. – Investor relations
- Published information from the FSR Group
- Evaluation of publicly available company documents
- Analysis of historical register data
- On-site investigation at the registered business address of Blocktrade SA in Luxembourg
- Documentation of changes to the company structure
- Analysis of published investor information
- Press inquiry to Blocktrade requesting a statement
- Ongoing documentation and evaluation of publicly available information since 2018
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