Wednesday, May 29, 2024

US Senator Raises Concerns About Prometheum Co-CEO’s Congressional Testimony

In an open letter addressed to U.S. Attorney General Merrick Garland and Securities and Exchange Commission (SEC) Chairman Gary Gensler, Senator Thomas Tuberville (R-AL) expressed his apprehension regarding allegations that Prometheum, Inc., a registered digital asset company, may have provided false testimony to Congress and violated U.S. securities laws.

Senator Urges Investigation into Prometheum

Republican Senator Thomas Tuberville from Alabama has called for an investigation by the U.S. Securities and Exchange Commission (SEC) and the Department of Justice (DOJ) into digital asset firm Prometheum. Alongside Tuberville, fellow Republican lawmakers Mark Alford, Blaine Luetkemeyer, Ralph Norman, Byron Donalds, and Barry Loudermilk have also endorsed the letter.

The letter states, “We are writing to express concern that Prometheum, Inc. (Prometheum) may have provided false testimony to Congress or violated U.S. securities laws.”

Senator Tuberville highlights the testimony of Prometheum’s Co-CEO, Aaron Kaplan, who stated before the U.S. House of Representatives Committee on Financial Services that the company began independently developing its technology platform from its China-based partners in December 2019. However, audited financial statements and SEC filings indicate that Prometheum continued to rely on partnerships with China-based entities, specifically Wanxiang and Hashkey subsidiaries, well into 2021.

The senator emphasizes that Prometheum’s audited financial statements for 2020, included in its SEC filings, explicitly state that Wanxiang is its sole project developer. The potential loss of Wanxiang’s services raises questions about the claimed independence from its Chinese partners and could significantly impact Prometheum’s ability to develop and maintain its platform.

The letter questions why Prometheum did not make it clear in its SEC filings that it had started developing its own technology platform independently from its China-based partners in December 2019, as Mr. Kaplan had asserted during his congressional testimony.

Senator Tuberville urges Garland and Gensler to conduct a comprehensive review of Prometheum’s statements to Congress, its audited financial statements, and SEC filings. The alleged inconsistencies found in these documents raise concerns about potential false statements to Congress and securities fraud through misleading SEC filings.

The senator concludes by underscoring the severity 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 believes that Prometheum’s conflicting statements in different forums, coupled with its ties to China-based entities with connections to the Chinese Communist Party (CCP), necessitate a thorough investigation.

What are your thoughts on the senator’s letter to Garland and Gensler? Feel free to share your opinions in the comments section below.

Frequently Asked Questions (FAQs) about investigation

What is the concern raised by the US Senator in the letter?

The US Senator expresses concern over allegations that Prometheum, Inc., a registered digital asset company, may have provided false testimony to Congress and violated US securities laws.

Who is demanding an investigation into Prometheum?

Republican Senator Thomas Tuberville from Alabama is demanding an investigation into Prometheum by the US Securities and Exchange Commission (SEC) and the Department of Justice (DOJ). Several other Republican lawmakers have also signed the letter.

What inconsistencies were highlighted regarding Prometheum’s statements?

The inconsistencies revolve around Prometheum’s Co-CEO, Aaron Kaplan’s testimony before Congress, where he claimed that the company began developing its technology platform independently from its China-based partners in December 2019. However, audited financial statements and SEC filings suggest that Prometheum continued to rely on partnerships with China-based entities well into 2021.

What actions does the US Senator urge the Attorney General and SEC Chairman to take?

The US Senator urges the Attorney General and SEC Chairman to conduct a thorough review of Prometheum’s statements to Congress, its audited financial statements, and SEC filings. The purpose is to investigate potential false statements to Congress and securities fraud through misleading SEC filings.

What are the implications of making false statements to Congress and submitting misleading SEC filings?

Making false statements to Congress is considered a crime, while submitting false or misleading statements in SEC filings constitutes securities fraud. The seriousness of these actions can have legal consequences for those involved.

Why does the US Senator believe a comprehensive investigation is necessary?

The US Senator believes that the conflicting statements made by Prometheum in different forums, coupled with its ties to China-based entities with connections to the Chinese Communist Party (CCP), underscore the need for a comprehensive investigation to address any potential wrongdoing.

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5 comments

TradingGuru July 12, 2023 - 6:31 am

i’m glad senator tuberville is pushing for accountability. false statements to congress and securities fraud can’t be taken lightly. let’s hope the authorities conduct a comprehensive review and get to the truth.

Reply
CryptoQueen July 12, 2023 - 9:47 am

promethium needs to come clean if they provided misleading information. senator tuberville’s letter highlights the seriousness of the situation. let’s see if there will be any legal consequences for their actions.

Reply
CryptoWatcher007 July 12, 2023 - 11:51 am

promethium’s alleged ties to china-based partners raise red flags. it’s crucial to review their financial statements and sec filings for any inconsistencies. senator tuberville is right to demand a thorough investigation.

Reply
InvestorGuy July 12, 2023 - 4:55 pm

tuberville’s concern about promethium’s statements is valid. if they provided false testimony to congress, that’s a serious issue. it’s important to investigate and ensure transparency in the digital asset industry.

Reply
CryptoEnthusiast123 July 12, 2023 - 4:55 pm

senator tuberville’s letter makes sense. he’s demanding investigation into promethium’s alleged false testimony and violations of us securities laws. seems like promethium has some explaining to do!

Reply

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