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Matt Walsh Profile picture
@MattWalshInBos
Jun 14, 2023 • 17 tweets • 6 min read • Read on X
This Prometheum storyline has got to be the strangest thing I have seen in awhile in this industry. Has anyone actually looked into this? Beyond bizarre…
Last month, in the midst of the SEC bringing cases on Coinbase + Gemini, and giving the stiff arm to Robinhood and others, Prometheum gets approval for a first of its kind Special Purpose Broker-Dealer (SPBD) for digital asset securities…
Then Prometheum’s CEO somehow gets a seat in front of Congress yesterday and starts reading off pre-written notes clearly coordinating narratives with Democratic members of Congress (or the SEC)

As @RSSH273 points out, this ATS absolutely will not work unless the projects first register the tokens with the SEC. There are currently no tokens registered with the SEC because the current regime is not viable for public blockchain networks..

US Representative Mike Flood hit the nail on his head on why Prometheum’s claims are utter nonsense:

The Prometheum guys want us to believe that all L1s are securities and will need to come and trade on Prometheum. Not happening. But enter Prometheum Chain! What is that you say? These guys have their own chain? Yes, and a token!
sec.gov/Archives/edgar… Image
“Well that’s just a PPT slide, they surely won’t do a token”…Wrong. They already pre-sold some to Wanxiang and others:

sec.gov/Archives/edgar… Image
Who is Wanxiang? Uhhh someone might want to look into this one. CCP affiliate? Wtf?

According to Pitchbook, Prometheum has raised $48.19 million. Like all private companies they are required to file a form D when they raise. Oddly even in their early rounds they used an investment bank to raise capital (very rare for venture backed startups at the early stage)..
They have paid in excess of $1.5 million in sales commissions to a NJ based outfit called Network 1 Financial Securities Image
Network 1 Financial Securities has quite the regulatory track record

files.brokercheck.finra.org/firm/firm_1357… Image
Just like Prometheum, Network 1 Financial is a China affiliated firm

files.adviserinfo.sec.gov/IAPD/Content/C… Image
And who is running Prometheum? These guys: Image
Who look alot like these guys:
gusraekaplan.com/attorneys/ Image
The Kaplan's are being held up as security law experts. Two of them went to a now unaccredited law school.

abajournal.com/news/article/a…
Other companies like Coinbase and Gemini have pursued the B/D and ATS paths. Those licenses under current SEC regs don't let you do much. The SEC is implying the Prometheum path solves the regulatory clarity issues. It doesn't.
What is going on here? Bizarre that this fringe player with no biz model is being held up as an example of compliance by the SEC when the actual businesses in the United States can’t get a fair shot. An SEC PSYOP to have the Dems oppose McHenry-Thompson market structure bill?

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More from @MattWalshInBos

Matt Walsh Profile picture
Dec 17
1/8 Prometheum picked an interesting day to announce a $20m raise. But as usual, things are incredibly strange with this company...
2/8 Convenient timing for the raise in that yesterday, it was revealed that Prometheum is suing a developer for saying mean things about them on X. They even threatened his mother!

3/8 On the fundraise itself, they say they raised $20m. The latest form D filing indicates a $20m target, but only $9.3 raised as of September 2024. These form Ds get updated when rounds are closed. Will Prometheum be updating today?

sec.gov/Archives/edgar…Image
Read 9 tweets
Matt Walsh Profile picture
Jul 17, 2023
SAB 121 and how Gary Gensler, the lead henchman of Elizabeth Warren’s anti-crypto army, is turning the SEC into a merit regulator and using an obscure accounting rule to prevent major banks from touching crypto in the United States… Image
In March 2022, the SEC published Staff Accounting Bulletin No. 121. SAB 121 applies to all entities that file financial information with the SEC under U.S. GAAP or IFRS and that have a safeguarding obligation for crypto assets.

sec.gov/oca/staff-acco…
Under SAB 121, the safeguarding entity must recognize a liability on its balance sheet and a corresponding asset under ASC 805, Business Combinations. Ok, so what?
Read 20 tweets
Matt Walsh Profile picture
Dec 13, 2022
Hey @KyleLDavies you seem to want to keep talking.

Just so it's in one place I will summarize my issues with you:

1. You fraudulently lied to your lenders on nature of business + financial condition. Market neutral? Come on.
2. Broke securities laws with US solicitation on Deribit SPV and Warbler Capital raises.

3. Siphoned off $ from Defiance, Warbler, Starry Night.

4. Kept raising $ from HNW/FO when you knew you were insolvent.
Also - I have the receipts. P.S. - sometimes it takes more than 6 months to catch bad guys.
Read 4 tweets
Matt Walsh Profile picture
May 20, 2019
1. A few thoughts on the impact of rising cryptoasset prices and the overall accelerating pace of innovation in this industry on the corporate mindset around “blockchain” projects…
2. Increased media attention inevitably leads to both internal and external corporate stakeholders asking “what are we doing in blockchain?” or “what is our blockchain strategy?”…
3. This drives corporate R&D groups to push to “get on the board” with a “blockchain” project. Unfortunately, many of these labs groups know that sr. management is allergic to Bitcoin and other permissionless blockchains…
Read 17 tweets

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