In a letter sent on July 10, six members of the United States Congress, led by Alabama Senator Thomas Tuberville, have called for an investigation into Prometheum, a cryptocurrency firm, by the U.S. Securities and Exchange Commission (SEC) and the Department of Justice (DoJ). The lawmakers allege that Prometheum has connections to the Chinese Communist Party (CCP) and accuse the co-CEO, Aaron Kaplan, of potentially providing false testimony during a congressional hearing.
According to the lawmakers, Kaplan’s testimony suggested that Prometheum had developed independently of two Chinese-based investors, Shanghai Wanxiang Blockchain and HashKey Digital Asset Group. This alleged contradiction between Kaplan’s statements and the information provided in Prometheum’s SEC filings prompted the lawmakers to request an investigation by SEC Chair Gary Gensler and Attorney General Merrick Garland.
The Republican lawmakers’ concerns about affiliations with China-based entities or the Chinese government are not new. Many within the party have expressed worries regarding Chinese influence when considering regulations and laws on digital assets. Former Senator Pat Toomey and Representative Tom Emmer, both Republicans, have previously cautioned against using China’s digital yuan at the Beijing 2022 Winter Olympics.
Cointelegraph reached out to Aaron Kaplan for comment, but no response was received at the time of publication. However, in a Wall Street Journal op-ed penned by Aaron and co-CEO Benjamin Kaplan on June 23, they dismissed Tuberville’s concerns as baseless, stating that Prometheum had terminated all co-development work and strategic relationships with Wanxiang and its affiliates in October 2021. They emphasized that Prometheum had severed all intellectual property and technology ties, ensuring no risk to the United States or its citizens.
The Prometheum co-CEO further mentioned that the firm had left the U.S.-based crypto advocacy group Chamber of Digital Commerce earlier in 2023.
This recent development highlights ongoing concerns within Congress regarding potential Chinese influence in American businesses, particularly in the cryptocurrency sector. The call for an investigation adds to the broader discussions on regulating cryptocurrencies and reinforcing national security in the face of international partnerships.