US Lawmakers Uncover CCP Links Calling for SEC and DOJ Investigation of Prometheum Crypto

Cryptocurrencies and the Chinese Communist Party

Six members of the United States Congress have written to the U.S. Securities and Exchange Commission (SEC) and Department of Justice, calling for an investigation into Prometheum over allegations of ties to the Chinese Communist Party.

In a July 10 letter, Alabama Sen. Tommy Tuberville and five House of Representatives members claimed that Prometheum co-CEO Aaron Kaplan may have provided false testimony at a June 13 hearing on regulatory clarity in the crypto space. According to the lawmakers, Prometheum’s connection to investors with links to the Chinese Community Party — including Shanghai Wanxiang Blockchain and HashKey Digital Asset Group — had not been mentioned by Kaplan.

The letter called on SEC Chair Gary Gensler and Attorney General Merrick Garland to look into the matter. Prominent Republicans, including Sen. Pat Toomey and Minnesota Rep. Tom Emmer, have frequently voiced concerns about Chinese involvement in the digital asset space, such as the use of China’s digital yuan at the Beijing 2022 Winter Olympics.

The crypto space has seen an influx of new projects over the past year, such as Shiba Inu, Pi, Matic, Mana, Tectonic, Voyager, Waves, Chainlink, BTT and CRO.

Crypto Prometheum’s Alleged Ties to China

Cointelegraph contacted Aaron Kaplan for a statement, but he did not respond by the time of publication. However, a Wall Street Journal op-ed written by Aaron Kaplan and co-CEO Benjamin Kaplan on June 23 suggested that Tuberville’s doubts concerning Prometheum’s purported ties to China were “unsubstantiated” and based on “outdated information.”

“We officially ended all joint development work and strategic relationships with Wanxiang and its affiliates on October 21, 2021,” the co-CEOs said. “Prometheum has completely severed all intellectual property and technological connections with Wanxiang, providing it and its affiliates with no access to any data that could put the U.S. or its citizens at risk.”

Aaron Kaplan added that the firm left the U.S. crypto advocacy group Chamber of Digital Commerce in early 2023.