- Prometheum, Inc. faces allegations of false testimony from top US politicians.
- Crypto lawyer Bill Morgan calls for penalties and questions the company’s future.
- Prometheum denies misrepresentation claims, defending its partnership with Wanxiang.
In a recent development, Prometheum, Inc., the firm behind the first FINRA-registered full-service market for digital asset securities, has found itself embroiled in a heated controversy.
The allegations stem from a letter by Alabama Senator Tommy Tuberville and five members of the House of Representatives, addressed to the Criminal Division and Securities and Exchange Commission (SEC).
The letter claims that Aaron Kaplan, co-CEO of Prometheum, Inc., may have provided false testimony during a crucial hearing on regulatory clarity in the crypto space held on June 13. Eleanor Terrett, a journalist at Fox Business, broke the news on Twitter.
According to the letter, Senator Tuberville and the Representatives suspect that Kaplan’s statements may have been deceptive, potentially constituting a crime or securities fraud. Prometheum responded to the allegations, refuting the claims made by Senator Tuberville and the Representatives.
According to the company, it accurately represented its relationship with Wanxiang, a key player in developing its blockchain trading system. The firm maintains that Aaron Kaplan’s testimony did not state that the joint development with Wanxiang ended in December 2019, as alleged.
Nonetheless, the credibility of Kaplan has already been called into question by the wider crypto community, including prominent figures like crypto lawyer Bill Morgan. Morgan, an expert in crypto law, strongly disapproves of Kaplan’s actions, stating that he has been thoroughly discredited within the crypto community.
Morgan further suggested that Kaplan should face penalties if it is determined that he did indeed provide false testimony. According to the lawyer, the allegations, if proven true, could spell disaster for Prometheum’s future in the crypto space.
Meanwhile, a Twitter user suggested that lies within the industry are common. Drawing a parallel with the former FTX CEO, Sam Bankman-Fried, the comment implies that certain individuals may enjoy immunity due to their connections or membership within a privileged group, colloquially called “the club.”
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