Six US congressmen allege a digital asset company may have lied about collaborating with the Chinese Communist Party (CCP).
According to a new letter, congressmen allege that Prometheum, Inc. “may have given false testimony to Congress or violated U.S. securities laws”.
The members of Congress, including Republican Senator Tommy Tuberville and Republican House of Representatives Blaine Luetkemeyer, accuse Prometheum co-CEO Aaron Kaplan of possibly lying to Congress when he indicated in written testimony that the company, which provides crypto trading services supplies,” began developing its technology platform. without influence from its China-based partners in December 2019.”
However, the congressmen say that Prometheum’s audited financial statements and filings with the US Securities and Exchange Commission (SEC) in 2020 and 2021 “indicate that Prometheum continued to rely on its partnership” with Shanghai Wanxiang Blockchain and its subsidiary Hashkey Digital Asset Group, which they say has ties to the CCP.
Prometheum’s agreement with the two Chinese entities did not expire until October 2021, according to the letter.
says the letter,
“If in December 2019 Prometheum began developing its own technology platform that was completely independent of its China-based CCP-bound partners while Mr. Kaplan tried to get Congress to believe his congressional testimony, why wasn’t this made clear in Prometheum’s SEC filings? Why would Prometheum continue to claim in SEC filings through 2020 and well into 2021 that it continued development efforts with its partners Wanxiang and HashKey?”
The letter was sent to U.S. Attorney General Merrick Garland and SEC head Gary Gensler, asking for an investigation into the matter.
says the letter,
“Making false statements to Congress is a crime. Filing false or misleading statements in SEC filings constitutes securities fraud. As we know, you will agree that the inconsistencies in Prometheum’s statements to Congress and the SEC are a matter worthy of thorough review, as is Prometheum’s continued membership in the FINRA (Financial Industry Regulatory Authority) and registration with the SEC.”
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