1 year ago
U.S. Senator Tommy Tuberville of Alabama and Congressman Blaine Luetkemeyer are calling connected Attorney General Merrick Garland and the Securities and Exchange Commission (SEC) Chair Gary Gensler to analyse Prometheum, Inc. amid allegations of mendacious grounds to Congress and imaginable violations of U.S. securities laws.
In a letter dated July 10, 2023, Tuberville and Luetkemeyer expressed concerns astir discrepancies successful statements made by Prometheum, a integer plus company, successful grounds earlier Congress and successful its SEC filings. They highlighted that Aaron Kaplan, Co-CEO and laminitis of Prometheum, testified earlier Congress that the steadfast commenced autarkic improvement of its exertion platform, abstracted from its China-based partners, successful December 2019. This claim, the legislators argue, contradicts indications successful Prometheum’s fiscal statements and SEC filings.
According to the letter, Prometheum continued to trust connected its concern with Shanghai Wanxiang Blockchain, Inc. (Wanxiang) and its subsidiary HashKey Digital Asset Group, Ltd. — some China-based entities with ties to the Chinese Communist Party — agelong aft Kaplan said the institution had started autarkic operations.
The lawmakers wrote:
“Prometheum’s audited fiscal statements and SEC filings during 2020 and 2021, which were relied upon by investors, bespeak that Prometheum continued to trust connected its concern with Wanxiang and HashKey agelong aft December 2019.”
The representatives underscored that Prometheum emphasized its narration with Wanxiang successful its SEC filings and nationalist appearances, perchance misleading investors into believing the narration was ongoing and advantageous. They reason that Kaplan’s grounds to Congress appears to struggle with these filings.
“Making mendacious statements to Congress is simply a crime. Submitting mendacious oregon misleading statements successful SEC filings constitutes securities fraud,” the lawmakers emphasized, urging a thorough reappraisal of Prometheum’s statements, its continued rank successful the Financial Industry Regulatory Authority (FINRA), and its registration with the SEC.
Prometheum, a New York-based company, has precocious go the archetypal crypto-focused institution to registry with the U.S. Securities and Exchange Commission (SEC) and Financial Industry Regulatory Authority (FINRA) arsenic a special-purpose broker-dealer. This is simply a important improvement successful the crypto manufacture arsenic it indicates imaginable paths to regulatory support for different crypto companies looking to prosecute with integer assets.
However, Prometheum has attracted speculation and disapproval since Kaplan’s legislature testimony; arsenic a comparatively chartless subordinate astatine the opening of the year, its quality to summation SEC support wherever others person failed has raised questions.
The station US lawmakers telephone connected DOJ, SEC to analyse Prometheum, citing suspicions of “false testimony” and securities instrumentality violations appeared archetypal connected CryptoSlate.
English (US) 