Senior executives at Blockchain.com, a prominent £5 billion cryptocurrency firm based in London, are facing legal action due to the company’s failure to file its financial accounts on time. Co-founder and president Nicolas Cary, along with operations executive Al Turnbull, received a summons from Companies House back in May.
The initial case was heard at Cardiff Magistrates Court on September 25, with a follow-up hearing scheduled for November 26, as reported by The Telegraph.
Blockchain.com, which was founded in 2011 in York, is recognized as one of the early pioneers in the digital currency space. It has grown into a leading provider of cryptocurrency wallets and trading services, boasting a valuation of around $7 billion (£5 billion) as of November 2023, following a $110 million funding round. The company’s wallets serve millions worldwide, with notable investors including Baillie Gifford, Google Ventures, and billionaire Yuri Milner’s DST Global.
The legal issues stem from Blockchain.com’s late submission of its accounts for the year ending December 2022, with the company only filing its 2020 accounts this month. A conviction for failing to file accounts can result in an unlimited fine for the directors involved.
In its 2020 accounts, Blockchain.com indicated that its directors were hiring legal advisors to contest the charges. The company attributed its late filings to ongoing restructuring and a significant reduction in its workforce, stating that these changes required time to stabilize. Despite employing hundreds globally, Blockchain.com is under scrutiny as Companies House intensifies its enforcement efforts against businesses that neglect filing requirements.
A spokesperson for Companies House confirmed that enforcement action is being taken but could not provide further details. Meanwhile, Blockchain.com has not responded to requests for comment.
This legal challenge comes at a time when Companies House is actively tackling the issue of false information on its register. Following the granting of new powers in March to investigate and remove fraudulent entries, the agency is taking a more assertive approach to ensure compliance with statutory filing requirements.
In related news, steel magnate Sanjeev Gupta is also facing prosecution for failing to file accounts for over 70 businesses, with his representatives stating that they have made all reasonable efforts to resolve the situation.
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