“Decent” podcast host Matthew Bloomberg has filed a motion to dismiss the defamation lawsuit brought against him by Prometheum, Inc. and its subsidiaries. The controversy began when Bloomberg publicly commented on Prometheum’s activities in the cryptocurrency market, in particular regarding the SPBD license issued by the SEC, allegedly calling the firm “fraudsters.”
Gensler’s favorite crypto firm Prometheum sued crypto guy @matt_blumberg, who has <1000 followers, for calling them "scammers"
In accordance with the anti-SLAPP proposal, Prometheum sent legal threats to the guy’s mother and demanded that he praise their “innovative” business model: pic.twitter.com/4EGVrYECQu
— Jeff Roberts (@jeffjohnroberts) December 16, 2024
Matthew Bloomberg vs Prometheus
In the motion, Bloomberg argues that his statements constituted opinions on a matter of significant public interest protected by New York’s anti-SLAPP laws. He claims the case against him is an attempt to suppress free speech on public issues.
You may not know this, but @PrometheumInc is suing me. Today we submitted our resignation. Link to offer here: https://t.co/lIs9E4FRLG.
— 50 bps Matt (@matt_blumberg) December 16, 2024
Bloomberg highlighted that Prometheum’s SPBD license and its classification of cryptocurrencies as securities has sparked political and regulatory debate, raising concerns in the crypto community and among lawmakers.
The motion also alleges that Prometheus pressured Bloomberg to make a positive public statement and even contacted his mother to comply, but Bloomberg refused.
Bloomberg argues that Prometheum’s lawsuit is frivolous and aimed at silencing legitimate public discourse about the controversial actions of Prometheum and the SEC. He is seeking dismissal of the complaint and reimbursement of legal costs.
This is not the first time that Prometheum has come under scrutiny from the crypto industry. The firm has mixed support for the SEC’s position that existing cryptocurrency rules are fine, although much of the crypto industry has criticized the SEC’s heavy-handed approach. Prometheum’s position ultimately seemed to pay off when it received a first-of-its-kind special purpose broker-dealer (SPBD) license for cryptocurrency-based securities.
Moreover, in 2023, Prometheum was given the opportunity to testify before Congress about digital assets, an opportunity that sidelined better-known and more established crypto firms in favor of a relatively obscure company.
Matthew Bloomberg, who is also an advisor to the crypto industry, commented on Prometheum’s relationship with the SEC on social media following the 2024 presidential election. He called Prometheum “fraud” and suggested the firm would face consequences from a change in administration. Prometheus subsequently demanded an apology and a public statement praising their work, but Bloomberg refused to do so.
Prometheum then filed a defamation suit, claiming Bloomberg’s comments were false. However, the company did not provide an explanation as to why they were false.
