Blockchain.com Execs Hit With Summons for Failing to Submit Accounts on Time: Report

Crypto Reporter

Shalini Nagarajan

Crypto Reporter

Shalini Nagarajan

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Shalini is a crypto reporter who provides in-depth reports on daily developments and regulatory shifts in the cryptocurrency sector.

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Last updated:

October 21, 2024 03:17 EDT

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London-based Blockchain.com’s senior executives face prosecution for failing to file company accounts on time.

The Telegraph reported Sunday that co-founder and president Nicolas Cary, along with operations executive Al Turnbull, received a summons from Companies House in May.

This case againstBlockchain.com’s executives was presented at Cardiff Magistrates Court on Sept. 25th. Subsequently, another court date has been set for Nov. 26 to continue proceedings.

Blockchain.com reportedly only filed its 2020 year-end accounts this month. Meanwhile, the legal claims relate to its failure to submit accounts for the year ending Dec. 2022.

The company didn’t return Cryptonews’ request for comment by press time.

Directors Liable for Filing Delays

Directors or designated members are personally responsible for ensuring timely filings. In cases where delays occur due to unforeseen events, companies can request an extension. However, this request must be made before the filing deadline.

Moreover, failure to file accounts can lead to an unlimited fine upon conviction.

Meanwhile, the UK has been strengthening its regulatory framework for cryptocurrencies and blockchain companies. For example, new advertising rules were introduced in Oct. 2023. These regulations require crypto companies to display clear risk labels, signaling a shift toward tighter oversight.

In its 2020 accounts, Blockchain.com said that its directors had hired legal advisers and planned to defend the case, according to the Telegraph.

Additionally, the company attributed the delay in filing to a restructuring and a “significant reduction” in the workforce, which it said took time to stabilize. With hundreds of employees worldwide, Blockchain.com noted that the directors are taking steps to ensure compliance with statutory annual filing requirements.

In Nov. 2023, Blockchain.com reached an estimated valuation of $7b after raising $110m in a funding round. Major investors, including Baillie Gifford, Google Ventures, and billionaire Yuri Milner through DST Global, participated, underscoring the company’s appeal to key investment players.