Blockchain.com Executives Face Legal Action for Late Financial Filings

Executives at Blockchain.com are facing legal repercussions for failing to submit company accounts on time. Reports indicate that co-founder and president Nicolas Cary alongside operations executive Al Turnbull received summons from Companies House in May regarding this issue.

The case against the executives was presented at Cardiff Magistrates Court on September 25 with a follow-up court date scheduled for November 26 to continue the proceedings. Notably Blockchain.com only filed its year-end accounts for 2020 this month while the legal claims pertain to their failure to submit accounts for the year ending December 2022.

Accountability of Directors

In the UK directors or designated members of a company are personally liable for ensuring timely financial filings. If delays occur due to unforeseen circumstances companies have the option to request an extension. However this request must be made prior to the original filing deadline. Failure to comply can lead to significant penalties including the possibility of an unlimited fine upon conviction.

The UK's regulatory landscape for cryptocurrencies and blockchain firms has been evolving with increased scrutiny. In October 2023 new advertising regulations were introduced requiring crypto companies to provide clear risk labels signaling a shift towards more stringent oversight of the sector.

Reasons for Filing Delays

According to the Telegraph Blockchain.com cited staffing reductions as a key reason for the delayed filings. In their 2020 accounts the company indicated that the directors had engaged legal advisors and planned to mount a defense against the allegations. They attributed the filing delays to a company restructuring and a "significant reduction" in workforce which contributed to a longer stabilization process. Blockchain.com which employs hundreds globally has stated that its directors are committed to ensuring compliance with statutory annual filing requirements moving forward.

Despite the legal challenges Blockchain.com recently achieved a valuation of approximately $7 billion following a $110 million funding round in November 2023. The funding attracted prominent investors including Baillie Gifford Google Ventures and billionaire Yuri Milner through DST Global which underscores the company's continuing appeal to major investment players in the market.