Blockchain.com Execs in Court Over Disclosure Delays

Court proceedings are currently underway as Companies House escalates its enforcement initiatives, and executives of Blockchain.com are at risk of prosecution

The Telegraph has learned that Blockchain.com, a British crypto provider, is currently facing legal action as a result of two senior executives being charged with failing to file accounts on time. The charges were based on court documents.

In May, Companies House summoned Nicolas Cary, the co-founder and president, and Al Turnbull, the operations executive. Court proceedings at Cardiff Magistrates Court commenced on September 25, as indicated by the report, with an additional hearing scheduled for November 26.

The legal claims are centered on the firm’s delayed filing of accounts for the year ending December 2022. According to the report, the business submitted accounts for the year ending 2020 only in October.

Blockchain.com attributed the late filing to a restructuring effort and a “significant reduction in the wider group’s workforce,” which the company stated required time to stabilize.

The company disclosed in its 2020 financial statements that its directors had obtained legal counsel and were preparing to contest the allegations. The company’s directors may be subject to an unlimited fine if they are found guilty of neglecting to file accounts, according to The Telegraph.

Blockchain.com, founded in 2011 by Peter Smith and Nicolas Cary, was valued at approximately $7 billion in November 2023 after raising $110 million.

Firms such as Baillie Gifford, Google Ventures, and DST Global, the company of billionaire Yuri Milner, are among the investors.

According to Bloomberg sources, Blockchain.com’s valuation has since declined to less than half of its previous $14 billion zenith. This decline was the result of a tumultuous period that included exposure to the collapse of the hedge fund Three Arrows Capital, to which Blockchain.com had lent $270 million.