IPO in ruins – Blocktrade sinking under lawsuits and Cryptix legacy issues?
Following the takeover by FSR and the collapse of the myWorld system, former owners are now also coming under the scrutiny of legal investigations.
Wave of lawsuits against Blocktrade – investors demand their money back, IPO a distant prospect
Between claims for repayment, legal disputes and broken promises
What was once considered a European crypto showcase case is increasingly turning into a legal crisis: Blocktrade S.A. is facing a wave of claims for repayment and damages, while the much-heralded IPO is now effectively off the table.
According to the unanimous assessment of capital market experts, a listing is currently considered out of the question – not only are approved prospectuses and audited financial statements missing, but so is the regulatory basis on which such a procedure could even be approved. In addition, upon enquiry, all relevant stock exchanges informed us that they had received neither an application nor an enquiry regarding a planned IPO.
As long as there are outstanding claims against the company, an IPO would be legally and reputational untenable. No supervisory authority in Luxembourg, Singapore or elsewhere would grant approval as long as there are unclear ownership structures and outstanding liability risks.
Investors demand their money back
Several investors have taken legal action in recent months to reclaim their deposits or subscription amounts from 2018 to 2024.
They argue that the economic and organisational conditions of the company have fundamentally changed, for example due to multiple changes of ownership, the failure to deliver on announced features, and the transfer of control to Singapore.
Among other things, the lawsuits are examining whether investors invested on the basis of incomplete or misleading information, for example with regard to the allegedly imminent stock market listing or the ‘strong support’ from the FSR Group. If these allegations are confirmed, this will give rise to claims for rescission or damages, especially if investors would have refrained from purchasing the shares had they been fully aware of the actual circumstances.
In view of the documented changes in ownership, the lack of audited annual financial statements and the continuing information gaps, specialist solicitors see considerable liability risks for those responsible and shareholders.
Links with Lyconet and myWorld
The insolvency of Lyconet and myWorld International AG in August 2025 revealed for the first time the extent to which former marketers had been transferred to Blocktrade as part of internal programmes or exchange campaigns.
Numerous affected parties report that they opened accounts or made deposits in the belief that there was an ongoing business connection between myWorld, Lyconet and Blocktrade – in many cases assuming that this was a further development initiated or secured by myWorld.
The actual extent of this referral only became clear after the insolvency, when the Lyconet systems were shut down and internal evidence became inaccessible.
It was only when the original structures collapsed that it became apparent how closely the sales logic of Lyconet and Blocktrade could intertwine in practice – and how little transparency there actually was regarding ownership, responsibilities and risks.
According to several investor solicitors, law firms are currently examining whether this transfer can be classified as misleading or illegal without express consent or risk disclosure.
This puts Blocktrade increasingly in the spotlight of a system in which internal loyalty and economic interests may have been deliberately intertwined.
Legacy issues from the Cryptix era – liability for previous deposits not ruled out
Between 2020 and 2023, Blocktrade S.A. was under the control of the Cryptix Group, which positioned the company as part of its ‘digital asset ecosystem’.
During this period, deposits and investments were solicited across Europe – including via platforms such as Conda and the company’s own website, blocktrade.com.
According to the current assessment of several legal experts, it is being examined whether the ownership structure of the Cryptix Group at that time could give rise to joint liability for these deposits.
This is based in particular on the provisions of the EU Prospectus Regulation (EU) 2017/1129 and national capital market laws, according to which issuers and persons responsible for prospectuses are liable for incorrect or incomplete information. If it turns out that investors invested during this period on the basis of incomplete or misleading information – for example, regarding the risk situation, ownership structure or nature of the investments offered – claims for reimbursement could also be asserted against former owners or responsible parties.
In particular, legal experts are examining whether the marketing documents and subscription information at the time accurately reflected the actual economic situation and legal structure of Blocktrade.
No court decision has been made on this matter to date, but according to research, several law firms are preparing corresponding review and collective proceedings.
Conclusion
Blocktrade is at a crossroads:
Between pending lawsuits, unresolved liability issues and an unrealistic IPO, the company is in danger of losing the last remnants of its credibility.
What once began as a regulated fintech company with European aspirations is now exemplary of an industry in which promises outweigh substance.
Whether those responsible in Luxembourg, Singapore or the former ownership structure of the Cryptix Group will still be able to limit the legal and reputational damage will only become clear once the pending proceedings have been decided.
For many investors, however, it will probably be too late by then.
Note:
This article is a journalistic analysis. It is based on publicly available sources, including
- CSSF Luxembourg: ‘First Supplement to the Growth Prospectus’, 11 November 2024
- Public registers in Luxembourg, Estonia, Switzerland and Singapore (as of October 2025)
- Lyconet/myWorld insolvency documents (August 2025)
- Recovery proceedings and investor information (September–November 2025)
- EU Prospectus Regulation (EU) 2017/1129 and national capital market laws
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