Taiwan Blocto Wallet suddenly shuts down! Assets may be permanently lost if not withdrawn before December 19

Taiwan-based portal technology company Blocto, a multi-chain wallet, suddenly announced that it will cease operations at 11:00 AM on December 19, Taiwan time. In its announcement, Blocto explicitly warned users that if they do not withdraw BloctoSwap liquidity, transfer tUSDT cross-chain, and export private keys before the deadline, assets may be permanently lost.

Blocto Shutdown Countdown: Users Must Do Three Things Within 48 Hours

The sudden shutdown of Blocto has brought an emergency crisis to 2 million users. According to Blocto’s official announcement, after 11:00 AM on December 19, Taiwan time (7:00 PM on December 18, Pacific Standard Time), Blocto Wallet, BloctoSwap, and Blocto Teleport will completely cease operation. This means users have less than 48 hours to act, or their assets may be permanently unrecoverable.

The first essential action is to withdraw liquidity from BloctoSwap. If users have provided liquidity mining on Blocto’s decentralized exchange BloctoSwap, they must immediately go into the app to withdraw all deposited liquidity pool tokens. Blocto emphasized in the announcement that failure to complete withdrawals before the shutdown date will result in permanent loss of access to these specific assets. This is not a technical delay but a complete inability to recover the assets.

The second action is to transfer tUSDT cross-chain. If users hold tUSDT (cross-chain USDT on Flow), they must immediately go to Blocto Teleport to transfer it back to Ethereum. Since Blocto Teleport is Blocto’s self-built cross-chain bridge infrastructure, once it ceases operation, these cross-chain assets will be stranded on Flow, and other market bridges may not support these special token formats.

The third and most critical action is to export private keys. Especially for users in Custodial Mode, they must switch to Non-Custodial Mode before the deadline to manually export their private keys. Blocto warns that if users do not manually complete this before the shutdown, they will permanently lose access to their wallets.

Blocto User Emergency Action List

Immediately withdraw BloctoSwap liquidity: Enter the app to withdraw all liquidity pool tokens to prevent assets from being permanently locked

Transfer tUSDT cross-chain: Use Blocto Teleport to transfer Flow chain’s tUSDT back to the Ethereum mainnet

Export private keys: Custodial Mode users must switch to Non-Custodial Mode, manually export, and securely store their private keys

Update Blocto App: Download the latest version to ensure proper export functionality

Security Warning: The Blocto team will never ask for private keys, only import private keys into trusted wallet services

Staking Users Rest Assured: Blocto staking services (nodes) are unaffected; users can continue managing their assets with private keys in other wallets

Flow Ecosystem Collapse: From $40 to $0.3—A Path of Destruction

The collapse of Blocto is not an isolated event but a direct consequence of the Flow ecosystem’s breakdown. Blocto revealed startling financial data in its announcement: the Flow token price plummeted from nearly $40 at its peak in 2021 to below $0.3 now, a decline of over 99%. During this catastrophic price crash, Blocto was operating at severe losses, incurring over $5.5 million in losses over the past few years to maintain community services.

As one of the earliest supporters of the Flow ecosystem, Blocto built the main infrastructure including the Blocto wallet, BloctoSwap, the Blocto cross-chain bridge, and BloctoBay. It also established the most used FLOW staking nodes and collaborated with top projects, serving millions of users. However, this deep integration also meant Blocto’s fate was entirely dependent on the success of Flow. When Flow collapsed, Blocto, as its largest infrastructure provider, bore the heaviest blow.

Even more shocking are the accusations against Flow/Dapper leadership. Blocto stated that after realizing operational funds were about to run out, they began attempting to communicate with Flow/Dapper leadership from June this year. However, after six months of relentless effort, Blocto was unable to secure a single meeting with the leadership. Every email exchange took weeks, while Blocto’s remaining funds continued to deplete. During these months, Blocto received no clear support and was unable to engage in constructive discussions on sustainable development paths.

This accusation exposes the harsh reality of the Web3 ecosystem: even if you are a core builder, when funds run out, you can be abandoned. Blocto invested five years and over $5.5 million into the Flow ecosystem, but in a crisis, it received no support from the ecosystem’s dominant party. This “use-up-and-abandon” attitude has sparked serious doubts about Flow’s governance.

From $80 Million Valuation to Zero: A Wake-up Call for Taiwan Web3 Startups

The collapse of Blocto serves as a profound warning to Taiwan’s Web3 industry. In February 2023, Blocto was valued at $80 million after completing Series A funding, with investors including Mark Cuban, owner of the Dallas Mavericks, IPX, and 500 Global. At that time, Blocto supported networks such as Aptos, Ethereum, Solana, Polygon, Flow, and BNB Chain, had over 1.6 million users, and was the second-largest wallet on the Flow blockchain.

Before the Series A, Blocto also completed an $8 million token private placement led by Animoca Brands in 2021, with CMS Holdings and Double Peak Group participating. Backed by top-tier institutions, Blocto once looked promising. However, from a $80 million valuation to announcing shutdown, less than two years have passed.

In its announcement, Blocto expressed deep reflection: “Focusing solely on building excellent products is not always sustainable.” This sentence reveals the dilemma faced by many Web3 projects. Blocto pioneered email and social login solutions, as well as SDKs, making blockchain interaction unprecedentedly simple. In terms of product innovation, Blocto was undoubtedly successful. But in business model, ecosystem choices, and risk management, Blocto’s failures are equally evident.

For Taiwan Web3 entrepreneurs, Blocto’s lessons are multiple: avoid over-reliance on a single ecosystem, ensure the sustainability of your business model, establish diversified revenue streams early when funds are abundant, and proactively seek transformation before crises occur rather than passively waiting for rescue.