Cryptocurrency Giant Faces Prosecution Over Late Filing of Accounts
A leading cryptocurrency business, valued at £5 billion, is facing prosecution due to its failure to file accounts on time. The case against Blockchain.com, a London-headquartered company, has been ongoing since May, with senior executives Nicolas Cary and Al Turnbull being issued a summons by Companies House.
A Growing Trend of Enforcement Action
The prosecution of Blockchain.com is part of a growing trend of enforcement action taken by Companies House against businesses that fail to file their accounts on time. The government body has become increasingly aggressive in its pursuit of companies that ignore filing deadlines, amid concerns that its register is being polluted with bogus directors and fake companies.
A Restructuring Gone Wrong
According to court documents, Blockchain.com filed its accounts for the year ending 2020 only this month, with the legal claims relating to its failure to provide accounts for the year ending December 2022. The company has blamed the late filing on a restructuring of the company and a “significant reduction in the wider group’s workforce” which has “taken a period of time to stabilise”.
Consequences of Non-Compliance
A conviction for failing to file accounts can result in an unlimited fine, and the directors of Blockchain.com are taking steps to defend the matter. The company has stated that it is taking “appropriate steps to remediate the company’s compliance with all statutory annual filing requirements”.
A New Era of Enforcement
The prosecution of Blockchain.com comes as Companies House steps up its enforcement action against businesses that fail to comply with filing requirements. In March, the body was granted new powers to query, investigate, and remove false information from the register, promising a more “robust approach”.
A Crackdown on Non-Compliance
The case against Blockchain.com is just one example of the growing trend of enforcement action taken by Companies House. Earlier this month, it was reported that steel magnate Sanjeev Gupta was facing prosecution for allegedly failing to file accounts for more than 70 businesses. As Companies House continues to crack down on non-compliance, businesses will need to ensure that they are meeting their filing requirements to avoid facing similar action.
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