The recent focus on the connection between Ethereum co-founder Vitalik Buterin and Wanxiang Blockchain Labs has generated surprise and scrutiny among the crypto community. This connection has re-entered the limelight due to Prometheum, a firm that has become the Securities and Exchange Commission’s (SEC) golden child for regulatory compliance and is partly owned by Shanghai Wanxiang Blockchain.
Prometheum, the first crypto firm ordained by the SEC and a member of the Financial Industry Regulatory Authority (FINRA), has been praised by SEC Chairman Gary Gensler for showcasing that regulatory compliance in the crypto sector is indeed attainable. However, the company’s relationship with Shanghai Wanxiang Blockchain, which has links to Ethereum’s early days and Buterin himself, has raised questions.
Wanxiang Blockchain Labs, a non-profit research institution, was launched by China Wanxiang Holding in 2015. Its resources were integrated into Shanghai Wanxiang Blockchain in 2017. Buterin’s connection to the non-profit dates back to 2015, when then-CEO of Wanxiang Blockchain Labs Feng Xiao formed a relationship with Buterin and purchased $500,000 worth of Ethereum to help him fund developer payments. Buterin was also listed as the chief scientist for Wanxiang Blockchain Labs during Blockchain Week 2016, an event co-hosted by the Ethereum Foundation and Wanxiang Blockchain Labs.
Prometheum established a strategic partnership and joint development agreement with Shanghai Wanxiang Blockchain in 2018. This granted Prometheum access to Wanxiang’s technology resources, industry contacts, and intellectual capital, with both organizations committed to sharing resources. However, according to Prometheum co-CEO Aaron Kaplan’s written testimony prepared for the House Financial Services Committee, the agreement was terminated in October 2021. Kaplan emphasized that Wanxiang and its affiliates have no access to Prometheum’s code, technology, or software, and that the company’s code has been developed internally.
While these connections have raised questions, it is important to consider that success stories like Prometheum can lead to overzealous scrutiny and speculation. Undoubtedly, understanding the intricacies of relationships between crypto companies and their founders can be valuable, but it should not overshadow the overarching theme of the industry seeking regulatory compliance and acceptance. As the sector continues to evolve, Prometheum sets an example for how crypto companies can successfully navigate the complex regulatory landscape and contribute to the legitimization of the industry.
Source: Decrypt
