The insolvency of Curaçao-based Blockdance B.V., the former operator of BC.Game, and the subsequent asset transfer to Small House B.V. have created a complex legal and financial situation with significant implications for the online gambling industry. This mirrors the earlier case of Rabidi N.V., where assets were similarly transferred and vanished shortly before bankruptcy.
Legal Actions and Bankruptcy Proceedings
On November 12, 2024, a Curaçao court declared both Blockdance B.V. and Small House B.V. bankrupt. This decision followed lawsuits initiated by the Foundation for the Advocation of Victims of Online Gambling (SBGOK), representing international claimants alleging unpaid player balances. Notably, BC.Game operated illegally in Europe and other jurisdictions; for instance, the website was blocked in Italy for violating Italian laws.
In the lawsuit, SBGOK accused Small House of running illegal gambling services across Europe through a complex network of mirror sites and online guides. These sites allegedly offered detailed instructions on bypassing local regulations, targeting users in countries like Germany, Denmark, and Switzerland, where a local license is mandatory for legal operations.
Asset Transfer and Disputed Liabilities
In April 2024, Blockdance reportedly transferred BC.Game’s assets to Small House. However, this transfer has been controversial:
- Small House claimed it acquired only BC.Game’s assets, such as the website and marketing operations, not the liabilities associated with Blockdance.
- The asset transfer left behind substantial debts, leading to disputes about ownership and responsibility for player losses.
- Evidence presented in court suggested operational continuity between Blockdance and Small House, including inconsistencies in website registrations and public representations.
- A trustee has been appointed to take control of Small House, potentially excluding its own team from the proceedings.
- In the Rabidi case, assets were transferred to Adonio N.V. for €1.2 million, allegedly without Rabidi receiving any payments.
Bankruptcy Implications
The bankruptcy case involves significant financial issues:
- Players are collectively owed over $2 million in unpaid winnings.
- The court rejected Small House’s arguments that many claims stemmed from “bonus exploitation” or “software manipulation.”
- BC.Game has been accused of failing to maintain a local or reputable bank account, violating licensing conditions.
BC.Game has contested the bankruptcy ruling, claiming the allegations lack sufficient evidence and that internal investigations revealed inconsistencies in the claims. The company is appealing the decision, arguing that the court overlooked vital evidence, and maintains that it has adhered to regulatory requirements, planning to demonstrate compliance during the appeal process.
The Malta Connection
According to a recent report by the Times of Malta, financial forensic investigator Luigi Faneyte has filed a criminal complaint against Curaçao’s Minister of Finance, Javier Silvania, and Maltese nationals Mario Galea, Aideen Shortt, and Mario Fiorini. The allegations involve corruption, money laundering, and regulatory failures within Curaçao’s gambling industry.
This case has broader implications for the online gambling industry, particularly for crypto-focused operators, and may lead to increased scrutiny of Curaçao’s licensing practices.
For more detailed information, refer to the original article on Scam-Or Project.