On Monday, U.S. senator Thomas Tuberville (R-AL) published an open letter to U.S. attorney general Merrick Garland and Securities and Exchange Commission (SEC) chairman Gary Gensler expressing concern over allegations that Prometheum, Inc., a registered digital asset company, may have provided false testimony to Congress and violated U.S. securities laws.
U.S. Lawmaker Demands Investigation Into Prometheum
Republican senator Thomas Tuberville from Alabama believes the digital asset firm Prometheum should be investigated by the U.S. Securities and Exchange Commission (SEC) and Department of Justice (DOJ). In addition to Tuberville, the Republican lawmakers Mark Alford, Blaine Luetkemeyer, Ralph Norman, Byron Donalds, and Barry Loudermilk have also signed the letter.
“We write to express concern that Prometheum, Inc. (Prometheum) may have provided false testimony to Congress or violated U.S. securities laws,” the letter details.
Senator Tuberville points out that Prometheum‘s Co-CEO, Aaron Kaplan, testified before the U.S. House of Representatives Committee on Financial Services, stating that the company began developing its technology platform independently from its China-based partners in December 2019. However, audited financial statements and SEC filings indicate that Prometheum continued to rely on its partnership with Wanxiang and Hashkey, subsidiaries of China-based entities, well into 2021.
The senator emphasizes that the audited financial statements for 2020, included in Prometheum’s SEC filings, clearly state that the company relies on Wanxiang as its sole project developer. The loss of Wanxiang’s services could ostensibly have a significant adverse effect on Prometheum’s ability to develop and maintain its platform, raising questions about the claimed independence from its Chinese partners.
“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?” the letter asks Garland and Gensler.
Senator Tuberville urges Garland and Gensler to conduct a thorough review of Prometheum’s statements to Congress, its audited financial statements, and SEC filings. The alleged inconsistencies in these documents raise concerns about potential false statements to Congress and securities fraud through misleading SEC filings, the letter discloses.
The senator concludes by highlighting the seriousness of making false statements to Congress, which constitutes a crime, and the implications of submitting false or misleading statements in SEC filings, which constitutes securities fraud. Tuberville insists the conflicting statements made by Prometheum in different forums, combined with its ties to China-based entities with CCP connections, underscore the need for a comprehensive investigation.
What do you think about the senator’s letter to Garland and Gensler? Share your thoughts and opinions about this subject in the comments section below.
