US Lawmakers Accuse Founders of Digital Asset Firm of Working With Chinese Communist Party

Six US Congressmen are alleging that a digital asset firm may have lied about working with the Chinese Communist Party (CCP).

According to a new letter, the congressmen allege that Prometheum, Inc. “may have provided false testimony to Congress or violated US securities laws.”

The congressmen, including Republican Senator Tommy Tuberville and Republican House of Representative member Blaine Luetkemeyer, accuse Prometheum co-CEO Aaron Kaplan of possibly lying to Congress when indicating in written testimony that the firm, which provides crypto trading services, “began developing its technology platform void of influence from its China-based partners in December 2019.”

However, the congressmen say that Prometheum’s audited financial statements and filings with the U.S. Securities and Exchange Commission (SEC) in 2020 and 2021 “indicate Prometheum continued to rely on its partnership” with Shanghai Wanxiang Blockchain and its subsidiary Hashkey Digital Asset Group, who, they allege, have ties to the CCP.

Prometheum’s agreement with the two Chinese entities did not end until October 2021, according to the letter.

Says the letter,

“If Prometheum began developing its own technology platform totally independent of its China-based, CCP-tied partners in December 2019 as Mr. Kaplan attempted to lead Congress to believe in his congressional testimony, why was this not made clear in Prometheum’s SEC filings? Why would Prometheum continue to assert in SEC filings through 2020 and well into 2021 that it was continuing development efforts with its partners Wanxiang and HashKey?”

The letter was sent to US Attorney General Merrick Garland and SEC head Gary Gensler, requesting an investigation into the matter.

Says the letter,

“Making false statements to Congress is a crime. Submitting false or misleading statements in SEC filings constitutes securities fraud. As we know you will agree, the inconsistencies in Prometheum’s statements to Congress and the SEC is a matter that deserves thorough review, as does Prometheum’s continued membership in the FINRA (Financial Industry Regulatory Authority) and registration with the SEC.”

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