Cryptocurrency

US lawmakers allege CCP connection in calling for SEC, DoJ investigation of Prometheum

July 10, 2023
2 minutes read

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Six members of the US congress have referred to as on the U.S. Securities and Alternate Fee (SEC) and Division of Justice to research Prometheum, claiming the agency has ties to the Chinese language Communist Social gathering. 

In a July 10 letter, Alabama Senator Thomas Tuberville and 5 members of the Home of Representatives alleged Prometheum co-CEO Aaron Kaplan could have offered false testimony at a June 13 listening to on regulatory readability within the crypto area. The U.S. lawmakers claimed Prometheum was related to traders with “ties to the Chinese language Neighborhood Social gathering”: Shanghai Wanxiang Blockchain and HashKey Digital Asset Group.

In line with Tuberville and the Representatives, Kaplan’s testimony earlier than Congress instructed Prometheum had been developed independently of Wanxiang and HashKey, allegedly contradicting data the agency had offered in SEC filings. The lawmakers referred to as on SEC chair Gary Gensler and Legal professional Normal Merrick Garland to look into the matter.

Associated: Blockchain Assoc. requests data on Prometheum over ‘suspicious’ approval

Many lawmakers throughout the Republican celebration — which incorporates the six members who signed onto the July 10 letter — have typically invoked considerations about affiliations with China-based entities or the nation’s authorities in contemplating regulation or legal guidelines on digital belongings. Former Senator Pat Toomey and Minnesota Consultant Tom Emmer each issued warnings on utilizing China’s digital yuan on the Beijing 2022 Winter Olympics.

Cointelegraph reached out to Aaron Kaplan for remark, however didn’t obtain a response on the time of publication. Nevertheless, a June 23 Wall Avenue Journal op-ed by Aaron and co-CEO Benjamin Kaplan claimed Tuberville’s considerations on Prometheum’s alleged ties to China have been “with out benefit” and relied on “out-of-date data”.

“We formally terminated all co-development work and strategic relationships with Wanxiang and its associates on Oct. 21, 2021,” stated the Kaplans. “Prometheum has severed all mental property and expertise ties to Wanxiang, giving it and its associates no entry to any data that would expose the U.S. or its residents to threat.”

The Prometheum co-CEO stated the agency left the U.S.-based crypto advocacy group Chamber of Digital Commerce in early 2023. 

Journal: Crypto regulation: Does SEC Chair Gary Gensler have the ultimate say?