Senior executives at Blockchain.com, a London-based cryptocurrency company valued at £5 billion, are facing legal action for failing to submit their financial filings on time.
The co-founder and president, Nicolas Cary, along with operations executive Al Turnbull, were summoned by Companies House in May 2024. The summon was issued for neglecting to meet the financial reporting requirements.
The case was initially heard at Cardiff Magistrates Court on 25 September 2024, with a follow-up hearing set for November 26, according to court documents reviewed by The Telegraph.
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Blockchain.com Struggles To Meet Regulatory Obligations
Blockchain.com, a prominent player in the digital currency space since its founding in 2011 in York, has been a key provider of cryptocurrency wallets and trading services. Despite its significant industry presence, the company has struggled to meet its regulatory obligations.
The legal action specifically pertains to the firm’s failure to file its accounts for the financial year ending December 2022. Notably, the company only managed to file its accounts for the year ending 2020 earlier this month.
Valued at $7 billion in November 2023 after raising $110 million, Blockchain.com’s services are used by millions of people to store and transfer cryptocurrency. Its investors include well-known firms such as Baillie Gifford, Google Ventures, and DST Global, which is led by billionaire Yuri Milner.
However, the company now faces the possibility of an unlimited fine if convicted for failing to file its accounts, a charge that is brought against the directors.
In its recently filed accounts for 2020, Blockchain.com indicated that its directors have sought legal counsel and intend to contest the charges. The company attributed the delay in filing to a significant restructuring and workforce reduction, which it claims required time to stabilize.
Blockchain.com, which employs hundreds of staff globally, stated that its leadership is taking “appropriate steps to ensure compliance with all statutory filing requirements.”
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UK Government Agency Takes Enforcement Action Against Blockchain.com
Companies House, the UK government agency responsible for registering companies and overseeing compliance, confirmed it is taking enforcement action against Blockchain.com.
This legal case comes as Companies House increases its enforcement efforts against businesses that fail to file accounts on time. The agency has adopted a tougher stance in recent months, partly due to concerns about false information in its registers.
In March, the government granted Companies House new powers to investigate and remove false information from the register.
Meanwhile, Blockchain.com is not the only high-profile company under scrutiny for delayed filings.
Earlier this month, The Financial Times reported that Sanjeev Gupta, a steel magnate, is also facing prosecution for failing to file accounts for more than 70 businesses. Mr. Gupta and his fellow directors have pleaded not guilty.
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