Lawmaker Alleges Prometheum May Have Lied to Congress and Investors
U.S. Senator Thomas Tuberville has written an open letter to the Attorney General and SEC Chair, calling for an investigation into Prometheum, a special-purpose broker. The letter alleges that Prometheum may have provided false testimony to Congress and violated U.S. securities laws. The lawmaker claims that Prometheum’s CEO, Aaron Kaplan, told Congress that the company developed its own blockchain platform independently, but SEC filings suggest it relied on a Chinese firm with ties to the Chinese Communist Party.
Key Points:
- Tuberville questions why Prometheum did not disclose their independent technology development in SEC filings if they claimed to have started in December 2019.
- The lawmaker previously raised concerns about Prometheum’s ties to the Chinese firm, Wanxiang, and its potential impact on data security and privacy for American investors.
- Prometheum has faced criticism from the crypto industry, with experts arguing that their proposed model for trading crypto assets as securities is unworkable.
- The open letter was also signed by Congressmen Luetkemeyer, Loudermilk, Norman, Donalds, and Alford.
- Prometheum’s CEO has defended the company, stating that Wanxiang has no access to their data and technology, and that the SEC has investigated their relationship.
Hot Take:
The allegations made by Senator Tuberville against Prometheum are serious and highlight concerns regarding transparency and potential foreign influence. It is essential for regulators to thoroughly investigate these claims to ensure the integrity of the crypto trading industry and protect investors. Prometheum’s response to these allegations will be crucial in determining their credibility and addressing the concerns raised by lawmakers and industry experts.
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