Executives at Blockchain.com are facing legal action due to delays in filing financial reports. Companies House, the UK's corporate registry, has intensified its enforcement actions against the company.

UK-based cryptocurrency firm Blockchain.com is facing legal consequences after two senior executives – co-founder and president Nicolas Cary and COO Al Turnbull – were accused of failing to file the company’s accounts on time. According to court documents obtained by The Telegraph, both executives were summoned in May, and legal proceedings began on September 25 in Cardiff. The next hearing is scheduled for November 26.

Late Financial Reports for 2022

The legal action focuses on the company's failure to submit its financial reports for the year ending in December 2022. The firm only filed its 2020 financial accounts in October 2023, which led to the prosecution. Blockchain.com attributed the delay to a restructuring effort and a significant reduction in workforce, which took time to stabilize.

Potential Consequences for Leadership

According to The Telegraph, the company’s leadership is preparing to defend themselves in court. If convicted for failing to file accounts, the executives could face unlimited fines.

Company History and Valuation

Blockchain.com was founded in 2011 by Peter Smith and Nicolas Cary. In November 2023, the company reached a valuation of around $7 billion after securing $110 million in funding. Notable investors include Baillie Gifford, Google Ventures, and DST Global.

Value Decline Following Crisis

According to sources from Bloomberg, the company’s valuation has since dropped to less than half of its previous high of $14 billion. This decline was partly due to its exposure to the collapse of the hedge fund Three Arrows Capital, to which Blockchain.com had loaned $270 million.

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