Cryptocurrency Giant Under Scrutiny as UK Authorities Pursue Legal Action
Two senior executives of Blockchain Access UK Ltd, a major cryptocurrency company, are set to appear in court in an unusual prosecution by Companies House over their failure to file mandatory financial accounts.
Nicolas Cary and Alasdair Turnbull, directors of Blockchain Access UK Ltd, have not submitted financial statements since 2020, despite the company’s reported billion-pound valuation. Blockchain.com, the parent entity, claims to have facilitated one-third of all Bitcoin transactions globally and boasts 91 million cryptocurrency wallets. In 2023, the firm secured an additional $110 million (£90 million) in funding, valuing the business at £5 billion.
The company’s application for Financial Conduct Authority (FCA) authorisation under anti-money laundering regulations was withdrawn in 2021 following discussions with the regulator. According to a company statement, “In 2021, in consultation with the FCA, the company withdrew its application given the FCA’s then position on international crypto asset exchange providers. Accordingly, the group restructured its operations and realigned business activities to subsidiaries abroad.”
Blockchain Access UK Ltd attributes the delay in financial reporting to “the need to restructure the wider group’s business model as a result of the Financial Conduct Authority’s implementation of certain key regulations that were unforeseeable by the company.” Consequently, much of its UK-based operations have been shifted overseas beyond FCA supervision.
The company’s overdue 2020 accounts were eventually filed last October, revealing revenue of £335 million but an overall loss of £5.4 million. Meanwhile, questions persist regarding the ownership structure of the UK arm. Until August 2024, 75% of shares were registered to a private Cayman Islands holding company, while the remaining 25% belonged to a US investor. However, company records now indicate that neither shareholder retains a controlling interest.
Adding to the firm’s troubles, The Mail on Sunday uncovered three outstanding county court judgments against Blockchain Access UK Ltd, including debts of £169, £1,545, and £1,655. The company has not commented on these liabilities.
Alasdair Turnbull, one of the directors facing prosecution, is a solicitor with a controversial history in debt collection. In 2009, The Mail on Sunday reported that his former company, HFO Services Ltd, had unlawfully withdrawn £283 from a woman’s debit card, later refunding the money after media intervention. The same year, his law firm, Turnbull Rutherford, was accused of harassing an individual over a debt owed by her neighbour.
Turnbull has not responded to requests for comment on Blockchain Access UK Ltd’s financial reporting failures or outstanding debts. If convicted, he and Cary could face an unlimited fine.
A spokesperson for Blockchain.com stated, “Blockchain.com takes our compliance with licence and regulatory requirements worldwide seriously. We have sorted all necessary documents related to this entirely administrative matter and are confident it will be closed quickly.”
In an announcement to its international users, from which UK customers were excluded, Blockchain.com downplayed the prosecution, highlighting Companies House’s historical record of dropping or delaying more than 60% of similar cases. The firm further stated that even in successful prosecutions, “convictions are considered minor within the UK’s legal framework, with minimal fines, no risk of imprisonment, and automatic expungement after 12 months.”
Blockchain.com expects the matter to be resolved swiftly, following the pattern of previous cases.
