A group of Republican lawmakers calls for investigation into Prometheum
A group of Republican lawmakers is urging the Justice Department and Securities and Exchange Commission (SEC) to investigate digital asset firm Prometheum. The call for investigation comes after Prometheum co-CEO Aaron Kaplan testified before a House committee as a Democratic witness in a hearing on crypto-related legislation. The lawmakers allege that Prometheum may have made false statements to Congress and submitted misleading statements in SEC filings.
Main points:
- Prometheum gained approval from the SEC as an alternative trading system
- Republicans want an investigation into Prometheum’s relationship with Chinese investors
- Sen. Tommy Tuberville led the call for investigation
- House Republicans signing the letter are members of the House Financial Services Committee
- Lawmakers question Prometheum’s claims of developing technology independently of Chinese partners
Prometheum’s ties to China under scrutiny
During the hearing, Republicans raised concerns about Prometheum’s business operations, including Chinese investment. The lawmakers now want an investigation into whether Prometheum mischaracterized its relationship with overseas investors in statements to the SEC and Congress. The Republicans specifically highlight Prometheum’s ties to China-based company Shanghai Wanxiang Blockchain, Inc. and its subsidiary HashKey Digital Asset Group, Ltd.
Hot Take: Republicans question Prometheum’s integrity
The call for investigation by Republican lawmakers underscores their concerns about Prometheum’s business operations and its ties to Chinese investors. The allegations of false statements to Congress and misleading SEC filings raise questions about the integrity of the digital asset firm. This development adds to the ongoing debate surrounding the regulation of blockchain-based assets and the role of government oversight in the crypto industry.
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