Legal Action Commenced Against Blockchain.com Executives for Failure to File Accounts on Time
Blockchain.com, a prominent British cryptocurrency provider, is currently facing legal action as two of its senior executives have been charged with the company’s failure to file accounts on time, according to court documents reported by The Telegraph.
Co-founder and president Nicolas Cary, along with operations executive Al Turnbull, were summoned by Companies House in May. Proceedings began on September 25 at Cardiff Magistrates Court, with another hearing scheduled for November 26.
The legal claims are centered around the delayed filing of accounts for the year ending December 2022. The report highlights that the company only submitted accounts for the year ending 2020 in October.
Blockchain.com has attributed the late filing to a restructuring effort and a significant reduction in the workforce, which took time to stabilize. In its 2020 accounts, the company stated that its directors sought legal advice and were preparing to defend the charges. The Telegraph notes that a conviction for failing to file accounts could lead to an unlimited fine for the company’s directors.
Founded in 2011 by Peter Smith and Nicolas Cary, Blockchain.com reached a valuation of approximately $7 billion in November 2023 when it raised $110 million. Notable investors include Baillie Gifford, Google Ventures, and billionaire Yuri Milner’s DST Global.
However, Bloomberg sources have revealed that the company’s valuation has since dropped to less than half of its previous peak of $14 billion. This decline followed a turbulent period that included exposure to the collapse of the hedge fund Three Arrows Capital, to which Blockchain.com had lent $270 million.
In the midst of its international expansion, Blockchain.com plans to increase its workforce by 25%.