US lawmakers allege CCP connection in calling for SEC, DoJ investigation of Prometheus – Crypto News

Six members of the United States congress have called on the US Securities and Exchange Commission (SEC) and Department of Justice to investigate Prometheus, claiming the firm has ties to the Chinese Communist Party.

In a July 10 letter, Alabama Senator Thomas Tuberville and five members of the House of Representatives allegedly Prometheus co-CEO Aaron Kaplan may have provided false testimony at a June 13 hearing on regulatory clarity in the crypto space. The US lawmakers claimed Prometheum was connected to investors 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.

,@SenTuberville op-ed: It’s past time for the DOJ and the SEC to investigate Prometheus’s ties to Chinahttps://t.co/57yMDtMt7V

— 1819 News (@1819News) July 10, 2023

Related: Blockchain Assoc. requests info on Prometheus 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 Senator Pat Toomey and Minnesota Representative Tom Emmer both issued warnings on using China’s digital yuan at the Beijing 2022 Winter Olympics.

Cointelegraph reached out to Aaron Kaplan for comment, but did not receive a response at the time of publication. However, a June 23 Wall Street Journal op-ed by Aaron and co-CEO Benjamin Kaplan claimed Tuberville’s concerns on Prometheus’s alleged ties to China were “without merit” and relied on “out-of-date information”.

“We formally terminated all co-development work and strategic relationships with Wanxiang and its affiliates on Oct. 21, 2021,” said the Kaplans. “Prometheum has severed all intellectual property and technology ties to Wanxiang, giving it and its affiliates no access to any information that could expose the US or its citizens to risk.”

The Prometheum co-CEO said the firm would leave the US-based crypto advocacy group Chamber of Digital Commerce in early 2023.

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