Crypto Exchange Blockport Declared Bankrupt After Failed STO

News | June 6, 2019 By:

Amsterdam-based crypto exchange Blockport has been declared bankrupt by a Dutch court after its security token offering (STO) failed to reach the soft cap of €1 million ($1.1M USD).

Blockport launched its STO on April 16 and ran until May 15, offering investors the ability to buy Blockport Securities (BPT) tokens with a minimum €500 ($560) investment. The exchange promised investors that they will receive (indirect) economic ownership of the company, and access to annual meetings with Blockport’s board and management team.

After running the STO for a month, the company announced that it did not reach the threshold amount of €1 million that they set as a softcap, and promised investors that they will get their money back.

“As a responsible but unfortunate measure, we have decided to drastically scale down our operations and development,” said Blockport co-founder and chief product officer Sebastiaan Lichter. “Running our operations and platform as-is without a substantial investment is currently not an economically viable and responsible option. The current situation requires us to take the platform offline at the end of this month and the core team of Blockport will focus its resources on developing the platform in stealth mode.”

Currently, the Blockport website remains live due to the unfinished refund process. The company plans to “properly take it offline” as soon as all refunds are finalized.

“The platform is still online so that we can properly take it offline and assist users with withdrawing their funds,” Lichter told Hard Fork. “We will communicate an exact date and time when the platform will go offline.”

Lichter also said that they are in talks with several parties that have shown interest in supporting a restart of Blockport in the future. However, the form or business structure is still unknown and subject to ongoing negotiations.

“We cannot share any names or plans before we have agreed on a concrete action plan,” Lichter said. “During the coming months we will assess what exact role Blockport will play in terms of business and development in collaboration with these parties. We expect to provide a more detailed update in Q3 2019.”

According to Litcher, the bankruptcy filing would not affect the company’s efforts to organize a restart of the Blockport platform.