The insolvency of Curacao-based Blockdance BV, the former operator of BC.Game, and the subsequent asset transfer to Small House BV has created a complex legal and financial situation with significant implications for the online gambling industry. This is already the second case after Rabidi N.V., where the assets were also transferred and disappeared shortly before the bankruptcy.
A Lawsuit & Bankruptcy Proceedings
On November 12, 2024, a Curaçao court declared both Blockdance B.V. and Small House B.V. bankrupt. This decision came after a series of lawsuits initiated by the Foundation for the Advocation of Victims of Online Gambling (SBGOK), representing international claimants who alleged unpaid player balances.
It must also be noted at this point that BC.Game has operated illegally in Europe and other jurisdictions. For example, the website was blocked in Italy over the violation of Italian laws.
In a lawsuit filed against the company by player advocacy network the Foundation for the Representation of Victims of Online Gaming (SBGOK). Two players filed claims for significant losses: one seeking $1,482,162.10 and the other $680,000. Additionally, a claim of $10,948.50 remained unsettled, which Blockdance claimed had been resolved through a credit to the player’s account. SBGOK disputed this, arguing that the payments had not been properly processed.
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 offer detailed instructions on bypassing local regulations, with a particular focus on targeting users in countries like Germany, Denmark, and Switzerland, where possessing 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 at the center of the controversy:
- 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 already been appointed to take control of Small House. Allegedly, Small House’s own team will be locked out of the proceedings, and that could be a major problem.
In the Rabidi case, assets were transferred to Adonio N.V. for €1.2 million, allegedly without Rabidi receiving any payments.
Read our forensic analysis of the Rabidi Bankruptcy here.
The Bankrupcty Implications
The bankruptcy case revolves around 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 strongly contested the bankruptcy ruling:
- The company claims the allegations lack sufficient evidence and that internal investigations revealed inconsistencies in the claims3.
- BC.Game is appealing the bankruptcy decision, arguing that the court overlooked vital evidence.
- The operator maintains that it has adhered to regulatory requirements and plans to demonstrate compliance during the appeal process.
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.
The Malta Connection
According to a recent report of the Times of Malta, Luigi Faneyte (LinkedIn profile), a financial forensic investigator and member of Curaçao’s opposition PAR party, accuses former Malta Gaming Authority head Mario Galea, Curaçao’s finance minister Javier Silvania, and two others, Aideen Shortt and Mario Fiorini of fraud and embezzlement in cases connected to Curacao-based cases.
In particular, Mario Fiorini, founder and CEO of IGA Group, is accused of playing a key role in transferring assets and illegal income from BC.Game through his IGA Group. Fiorini denies all allegations.
Share Information
If you have any information about the bankruptcy cases of Blockdance or Rabidi, please share it with us via our whistleblower system, Whistle42.
