Although Ethereum co-founder Vitalik Buterin’s association with Wanxiang Blockchain Labs has been known for the last eight years, it has now become a big deal after Crypto Twitter discovered that the new crypto exchange, Prometheum, which the US Securities and Exchange Commission highly favors, is partially owned by Wanxiang Blockchain Labs.
The crypto community showed concerns over sentiments made by Prometheum CEO Aaron Kaplan when he testified before Congress last week. Many wondered why his speech appeared to be praising the SEC instead of supporting other crypto players in advocating for clear regulations.
Prometheum markets itself as an SEC-ordained company and also claims to be regulated by FINRA. Over the last few days, SEC Chair Gary Gensler has referenced the crypto exchange as an example of a regulatory-compliant crypto company. However, Prometheum’s connection with Wanxiang Blockchain Labs has attracted scrutiny.
Is Buterin the Co-Founder of Wanxiang Blockchain Labs?
Founded in 2015, Wanxiang Blockchain Labs is a China-based non-profit organization (NPO) and a research institution. In November 2015, Buterin forged a relationship with the NPO then-CEO Feng Xiao, who bought Ethereum tokens worth $500,000. According to Global Coin Research’s report, Buterin used the funds to pay developers.
In 2016, the Ethereum co-founder was featured as a guest speaker at the Blockchain Week conference. This event was organized by Wanxiang Blockchain Labs and Ethereum Foundation. Its website mentions Buterin as the co-founder of the China-based NPO. Efforts to reach Buterin for comment regarding this matter were unsuccessful.
Prometheum’s Association With Wanxiang Blockchain Labs Explained
According to the Prometheum’s SEC filings, the crypto exchange partnered with Wanxiang Blockchain Labs in 2018. The partnership allowed Prometheum to access the NPO’s industry contacts, intellectual capital, and technology resources.
However, while delivering his speech last week, Kaplan revealed that his company decided to terminate the deal in 2021 on claims that it was no longer viable.
Kaplan added that neither Wanxiang Blockchain Labs nor its affiliates can access the Prometheum technology, code, or software. He also claimed that the crypto exchange’s code is built and controlled by American developers.
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