U.S. Senator Tommy Tuberville and Rep. Blaine Lutkemeyer of Alabama are facing charges of lying to Congress and violating U.S. securities laws against Attorney General Merrick Garland and the Securities and Exchange Commission (SEC). I am asking Chairman Gary Gensler to investigate Promethium.

and letter On July 10, 2023, Mr. Tuberville and Mr. Lütkemeyer expressed concern over the inconsistencies in statements made by digital asset firm Promethium in its congressional testimony and SEC filings. They said Promethium co-CEO and founder Aaron Kaplan told Congress in December 2019 that the company began developing its technology platform independently of its China-based partner. He emphasized that he had testified. Legislators say the claim contradicts what Congress has pointed out. Promethium Financial Statements and SEC Filings.

According to the letter, Promethium continued to support Shanghai Wanxiang Blockchain Co., Ltd. (Wanxiangsha) and its subsidiary Hashkey Digital Asset Group Co., Ltd., both based in China, long after Kaplan said, , companies with ties to the Chinese Communist Party). The company started an independent business.

MPs wrote:

“Investor reliance on Promethium’s 2020 and 2021 audited financial statements and SEC filings confirms that Promethium has continued to rely on its partnership with Wanxiang and HashKey since December 2019. shows.”

Representatives stressed that Promethium has emphasized its relationship with Wanxiang in its SEC filings and in public, which could mislead investors into believing the relationship is continuous and lucrative. They argue that Kaplan’s congressional testimony appears to contradict these filings.

“It is a crime to give a false answer to Congress. Making a false or misleading statement in a filing with the SEC constitutes securities fraud,” lawmakers stressed, citing Promethium’s statement, the Financial Services Regulatory Agency ( FINRA), continued membership, registration with the SEC, etc. have been thoroughly reviewed.

New York-based Promethium recently became the first crypto-focused company to register as a special purpose broker-dealer with the U.S. Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA). This is an important development in the cryptocurrency industry as it indicates the potential for regulatory approval for other cryptocurrency companies looking to get involved with digital assets.

But since Kaplan’s congressional testimony, Promethium has drawn speculation and criticism. A relatively unknown company at the beginning of the year, questions have been raised about its ability to gain SEC approval while others have failed.

An article first appeared on CryptoSlate claiming that US lawmakers have called on the Department of Justice and SEC to investigate Promethium, citing “false testimony” and alleged securities law violations.

By Jules

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