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Amidst the dynamic landscape of the cryptocurrency realm, an unexpected development has brought the longstanding association between Vitalik Buterin, the esteemed co-founder of Ethereum, and Wanxiang Blockchain Labs into the limelight.
Ethereum Co-Founder’s Connection with Shanghai Wanxiang Blockchain Sparks Controversy
This newfound focus on their connection has emerged concurrently with the industry’s scrutiny of Prometheum, a startup that has recently garnered attention for its regulatory compliance matters, receiving recognition from the SEC.
The revelation that Shanghai Wanxiang Blockchain possesses a partial ownership stake in Prometheum has captured the curiosity of the Crypto Twitter community.
A quick 🧵showing that Wanxiang, Chinese auto and early Ethereum Investor funded and setup Vitalik Buterins official wallets.
1/6https://t.co/4uMLLnzguq pic.twitter.com/Ec1cjLOLz2
— TruthLabs 🫡 (@BoringSleuth) January 29, 2023
During a recent hearing on Capitol Hill, Prometheum co-CEO Aaron Kaplan’s testimony regarding regulatory compliance raised eyebrows within the digital assets community. His remarks, in stark contrast to the talking points of numerous crypto firms, mirrored statements made by the SEC.
Prometheum proudly boasts the distinction of being the first SEC-ordained crypto firm and a member of FINRA, a self-regulatory organization focused on finance. The connection to Shanghai Wanxiang Blockchain has raised concerns among industry observers.
Established in 2015 under the auspices of China Wanxiang Holding, Wanxiang Blockchain Labs stands as a non-profit entity and esteemed research institution operating within China. Notably, in 2017, the organization’s resources seamlessly merged with Shanghai Wanxiang Blockchain, a well-established firm operating within the same industry domain.
The roots of Vitalik Buterin’s connection with Wanxiang Blockchain Labs can be traced back to the inception of Ethereum. During its early days in 2015, Feng Xiao, who served as the CEO of Wanxiang Blockchain Labs at the time, forged a relationship with Buterin.
In a significant show of support, Xiao made a substantial investment of $500,000 in Ethereum’s native token ETH, which played a pivotal role in assisting Buterin in funding developers. These details were reported by Global Coin Research, shedding light on the critical financial backing Buterin received during that period.
Buterin was a prominent guest speaker at Blockchain Week 2016, a conference co-hosted by the Ethereum Foundation and Wanxiang Blockchain Labs. Noteworthy figures like Circle CEO Jeremy Allaire and Ripple Labs co-founder Jed McCaleb also delivered talks at the event, according to the conference’s website.
At that particular juncture, Buterin was accorded the title of chief scientist of Wanxiang Blockchain Labs on their website, signifying his prominent role within the organization.
Remarkably, this aligns with the present-day depiction of Buterin’s position on the nonprofit’s website, reinforcing the continuity of his involvement. Additionally, Buterin’s stature as a co-founder of the non-profit entity is duly acknowledged on Facebook, underscoring his instrumental role in its establishment.
Prometheum’s Alliance with Shanghai Wanxiang Blockchain Dissolves as Regulatory Compliance Takes Center Stage”
As per official records filed with the SEC, Prometheum forged a strategic alliance and embarked on a collaborative development venture with Shanghai Wanxiang Blockchain in 2018.
This agreement paved the way for Prometheum to harness the wealth of technological assets, industry connections, and intellectual capital held by Wanxiang, reflecting their mutual dedication to resource synergy and collaboration.
However, Kaplan revealed in his written testimony for the House Financial Services Committee that Prometheum terminated its agreement with Shanghai Wanxiang Blockchain in October 2021. After a year of collaboration, it became evident that joint development was not feasible, Kaplan explained.
Kaplan emphasized that Wanxiang and its affiliates have no access to Prometheum’s code, technology, software, or ecosystem. He asserted that Prometheum prides itself on being an American-born, bred, and controlled company, with all code developed internally.
While the ongoing controversy surrounding the association between Ethereum’s co-founder and Shanghai Wanxiang Blockchain continues to evolve, the cryptocurrency community eagerly anticipates forthcoming updates and clarifications regarding this intricate matter.
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