In a large saucepan melt the butter over medium heat. Add the shallots and saute until softened, about 5 minutes.
Whisk in the flour and cook for 1-2 minutes. Slowly pour in the seafood stock, then the cream while whisking. Simmer over medium-low heat for 10 minutes.
Add in the shrimp and half of the crab meat, tobasco and paprika; simmer for 5 minutes.
Pour the soup into a blender and puree until smooth. Return the soup to the pot and add in the remaining crab meat. Simmer for another 5 minutes.
Ladle into bowls, sprinkle with fresh chives, and serve.