Blockchain.com Executives Face Prosecution as Companies House Strengthens Enforcement Measures
Legal action is being taken against British crypto provider Blockchain.com as two of its top executives have been charged for failing 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. Court proceedings began at Cardiff Magistrates Court on September 25, with another hearing scheduled for November 26.
The charges stem from the company’s delayed filing of accounts for the year ending December 2022, with accounts for the year ending 2020 only submitted in October. Blockchain.com attributed the delay to a restructuring effort and a significant reduction in its workforce, which required time to stabilize. In its 2020 accounts, the company stated that its directors sought legal advice and were preparing to defend the charges. Failure to file accounts could result in an unlimited fine for the directors.
Blockchain.com, founded in 2011 by Peter Smith and Nicolas Cary, reached a valuation of around $7 billion in November 2023 when it raised $110 million. Investors in the company include Baillie Gifford, Google Ventures, and Yuri Milner’s DST Global. However, sources suggest that the firm’s valuation has since dropped to less than half its previous peak of $14 billion due to various challenges, including exposure to the collapse of hedge fund Three Arrows Capital, to which Blockchain.com had lent $270 million.
As part of its international expansion, Blockchain.com plans to increase its workforce by 25%.