Blockchain.com, a key player in the cryptocurrency market, is embroiled in serious legal issues as two of its top executives face prosecution for failing to meet financial filing deadlines.
Nicolas Cary, the co-founder and president, alongside operations executive Al Turnbull, received summonses from Companies House in May 2024.
Court proceedings kicked off at Cardiff Magistrates Court on 25 September 2024, with a follow-up hearing scheduled for 26 November.
The charges against the executives primarily concern the company’s failure to submit its financial accounts for the year ending December 2022.
Remarkably, Blockchain.com only managed to file its accounts for the year ending December 2020 in October 2024, raising eyebrows about its operational transparency.
The company attributes these delays to a significant restructuring effort, alongside a considerable reduction in its workforce, which it claims necessitated time for stabilisation.
A spokesperson for Blockchain.com stated, "Our directors have sought legal counsel and are preparing to contest the charges."
The situation reflects not just administrative oversight but a tumultuous period for the firm, which has struggled to navigate regulatory requirements amidst broader operational challenges.
The stakes are high for Cary and Turnbull.
L-R: Nicolas Cary and Al Turnbull
If convicted, the executives could face unlimited fines, a severe consequence that underlines the seriousness of the charges.
Companies House, the UK’s official company register and compliance overseer, is stepping up enforcement actions against companies that fail to meet their financial obligations.
Following new powers granted in March 2024, the agency has been investigating and removing false information from its register, signalling a tougher regulatory landscape.
Established in 2011 and once valued at around $7 billion in November 2023, Blockchain.com has attracted significant investment from notable firms, including Baillie Gifford, Google Ventures, and billionaire Yuri Milner’s DST Global.
However, its valuation has dramatically declined, reportedly falling to less than half of its previous peak of $14 billion.
This downturn can be partly attributed to its exposure to the infamous collapse of the hedge fund Three Arrows Capital, to which Blockchain.com had lent $270 million.
In a climate where regulatory compliance is paramount, Blockchain.com’s struggles to meet its obligations raise concerns about its future viability and investor confidence.
As the November court date approaches, all eyes will be on the outcome and its potential impact on one of the industry’s most prominent names.
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