Six members of the United States Congress have called on the U.S. Securities and Exchange Commission (SEC) and Department of Justice to investigate Prometheum, claiming the firm has ties to the Chinese Communist Party.
In a July 10 letter, Alabama Sen. Tommy Tuberville and five members of the House of Representatives alleged Prometheum co-CEO Aaron Kaplan may have provided false testimony at a June 13 hearing on regulatory clarity in the crypto space. The U.S. lawmakers claimed Prometheum was connected to investors with “with ties" to the Chinese Community Party: Shanghai Wanxiang Blockchain and HashKey Digital Asset Group.
According to Tuberville and the Representatives, Kaplan’s testimony before Congress suggested Prometheum had been developed independently of Wanxiang and HashKey, allegedly contradicting information the firm had provided in SEC filings. The lawmakers called on SEC Chair Gary Gensler and Attorney General Merrick Garland to look into the matter.
Related: Blockchain Assoc. requests info on Prometheum over ‘suspicious’ approval
Many lawmakers within the Republican party — which includes the six members who signed onto the July 10 letter — have often invoked concerns about affiliations with China-based entities or the country’s government in considering regulation or laws on digital assets. Former Sen. Pat Toomey and Minnesota Rep. Tom Emmer both issued warnings on using China’s digital yuan at the Beijing 2022 Winter Olympics.
In a statement to Cointelegraph, Kaplan said the allegations against Prometheum were "partisan and specious" and denied many of the lawmakers' claims.
"Prometheum did not misrepresent our relationship with Wanxiang," said Kaplan. "Any reference to Wanxiang or HashKey being a co-founder, partner or otherwise is dated and incorrect. As of June 25, 2023, HashKey is only a shareholder as it no longer has the right to appoint a director to the Prometheum board of directors and Dr. Xiao stepped down from the Prometheum board of directors."
The Prometheum co-CEO said the firm left the U.S.-based crypto advocacy group Chamber of Digital Commerce in early 2023.
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