Six US Congress Members Call for Investigation of Prometheum
Six members of the United States Congress, led by Alabama Senator Tommy Tuberville, have called on the Department of Justice (DOJ) and the United States Securities and Exchange Commission (SEC) to investigate crypto firm Prometheum. The lawmakers allege that the company may have provided false testimony to Congress and violated securities laws. They also claim that Prometheum has close ties with investors connected to the Chinese Communist Party (CCP). The Republican lawmakers have urged the SEC Chair Gary Gensler and Attorney General Merrick Garland to look into the matter.
Kaplan’s Testimony and Allegations of Connection with CCP
During a hearing on regulatory clarity in the crypto space, Prometheum co-CEO Aaron Kaplan argued that the Securities and Exchange Commission had provided clear guidelines for crypto firms. However, Republican lawmakers focused on allegations that Prometheum had links with the CCP. Tuberville accused Kaplan of misleading testimony, claiming that the company had developed independently of Wanxiang and HashKey. Kaplan stated that Prometheum terminated its strategic relationships with Shanghai Wanxiang Blockchain in October 2021.
Lawmakers’ Concerns and Deadline for Response
Lawmakers have raised concerns about contradictory information provided by Prometheum in filings with the SEC. They question why the company did not disclose its independent development of technology in these filings. The senators have not given a deadline for the SEC and DOJ to respond but expect a prompt response.
Prometheum’s Response and Allegations Without Merit
Prometheum has not commented on the allegations, but a previous op-ed by Kaplan and co-CEO Benjamin Kaplan stated that Tuberville’s concerns were baseless and relied on outdated information. They emphasized that the company terminated all ties with Wanxiang and its affiliates, ensuring no risk to the US or its citizens.
Republican Concerns About China and Digital Assets
Republican lawmakers have consistently expressed concerns about ties between companies and China-based entities or the Chinese government. This letter to the SEC and DOJ follows a bill introduced by Tuberville to ban Chinese companies from acquiring stakes in American digital asset companies.
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