Blockchain.com Faces Legal Action Over Missing Financial Filings

Blockchain.com, a pioneering crypto firm, is facing legal action for failing to file its financial accounts since 2020, with the last set of accounts only submitted this month. The case was heard on September 25 in the Cardiff Magistrates Court, and the company is due to appear for a further hearing on November 25.

The charges stem from Blockchain.com’s failure to submit updated financial statements. Required to prove the company is in good financial standing—for the year ending December 2022. According to UK law, companies that fail to comply with filing regulations can face unlimited fines and even prison terms for serious offenses.

Legal Action and Court Proceedings

Blockchain.com, which was founded in 2011 and quickly became one of the first platforms to offer a digital wallet for Bitcoin, has been summoned by Companies House due to its delayed filings. The company’s president Nic Cary and operations executive Al Turnball were issued a summons in May for failing to file on time.

Although Blockchain.com submitted its 2020 accounts this month. Its continued failure to file for 2022 has resulted in prosecution. The company will stand before the court again in November. Facing potential penalties that could include an unlimited fine or a 6-month prison sentence for its executives.

Financial and Operational Struggles

In addition to its legal troubles, Blockchain.com has faced operational difficulties, including a significant reduction in workforce. The company laid off 150 employees in July 2022 and another 110 in January 2023 as it struggled to stabilize amid the broader market downturn. Despite these challenges, Blockchain.com continues to serve millions of users worldwide. With high-profile investors like Google Ventures and Baillie Gifford backing the company.

Blockchain.com stated that it takes regulatory compliance seriously. A spokesperson for the company to said: “Blockchain.com takes seriously our compliance with license and regulatory requirements around the world. We have sorted all necessary documents related to this entirely administrative matter and are confident it will be closed quickly.”

Companies House’s New Enforcement Powers

This case comes after Companies House, which oversees UK business filings. Vowed to enhance enforcement of corporate compliance. In March 2023, the government granted the agency new powers to take action against companies failing to comply with filing regulations. Martin Swain, director of intelligence at Companies House, stated that where guidance and support do not suffice. The agency would not hesitate to use its newly granted powers.