Key Points:
- Blockchain.com executives are facing court for failing to file accounts on time.
- Co-founder Nicolas Cary and executive Al Turnbull were summoned by Companies House.
- Legal proceedings began in September 2024, with a follow-up hearing scheduled for November.
- The company attributes the delay to internal restructuring and workforce reductions.
Court Action Against Blockchain.com Executives
Executives from Blockchain.com, a prominent British cryptocurrency firm, are currently involved in legal proceedings over delayed financial disclosures. The legal case stems from the company’s failure to submit its financial accounts on time, leading Companies House, the UK’s registrar of companies, to take enforcement action. The Telegraph first reported the case, citing court documents that detail the charges.
The executives facing prosecution are Nicolas Cary, co-founder and president of Blockchain.com, and Al Turnbull, an operations executive. Both were summoned by Companies House in May 2024, following their failure to file the company’s financial records for the year ending December 2022. Legal proceedings formally began on September 25 at Cardiff Magistrates Court, with another hearing scheduled for November 26.
Delays Due to Restructuring and Workforce Reductions
Founder of £5bn crypto business facing prosecutionhttps://t.co/WdsMihrQUE in Trouble#BlockchainLife2024#blockchains #BlockchainRevolution #blockchainnews #Crypto #CryptoNews #cryptomarket pic.twitter.com/5Hpb0d8zlB
— TasteCoin TC (@TasteCoinTC) October 21, 2024
Blockchain.com has explained that the delay in filing its accounts was primarily due to an internal restructuring process, which led to a significant reduction in its workforce. The company noted that stabilizing operations after such a large-scale restructuring took longer than anticipated, contributing to the late submission. According to court documents, the company had only filed its financial accounts for the year ending December 2020 in October 2023, despite being required to submit more recent records.
In response to the charges, Blockchain.com’s executives have sought legal counsel and plan to defend their actions in court. A conviction for failing to file accounts could lead to severe penalties, including unlimited fines for the company’s directors.
Blockchain.com takes seriously our compliance with license and regulatory requirements around the world. We have sorted all necessary documents related to this entirely administrative matter, and are confident it will be closed quickly.” – Blockchain.com Spokesperson
Founded in 2011 by Peter Smith and Nicolas Cary, Blockchain.com rose to prominence in the cryptocurrency sector, achieving a valuation of around $7 billion in late 2023. Key investors in the company include Baillie Gifford, Google Ventures, and DST Global, a fund led by billionaire Yuri Milner. However, the company has faced significant challenges in recent years, including financial exposure to the collapse of the hedge fund Three Arrows Capital, which had borrowed $270 million from Blockchain.com. This incident, along with market volatility, has contributed to a sharp decline in the firm’s valuation, which is now reported to be less than half of its previous $14 billion peak.
As the legal proceedings continue, Blockchain.com’s leadership faces increasing scrutiny over its financial transparency and management practices. The next court hearing in November will provide further developments on the company’s legal standing and potential penalties.
