Matthew Blumberg Files Motion to Dismiss Prometheum’s Case

Host of the podcast ‘Decent’, Matthew Blumberg, has filed a motion to dismiss a defamation lawsuit brought against him by Prometheum, Inc. and its affiliates. The controversy began when Blumberg made public comments about Prometheum’s operations in the crypto market, particularly regarding its SPBD license issued by the SEC, allegedly calling the firm “scammers.”

Gensler’s pet crypto firm Prometheum sued crypto guy @matt_blumberg—who has <1000 followers—for calling them “scammers”

Per anti-SLAPP motion, Prometheum directed legal threats at the guy’s mom & demanded he praise their “innovative” biz model: pic.twitter.com/4EGVrYECQu

— Jeff Roberts (@jeffjohnroberts) December 16, 2024

Matthew Blumberg vs Prometheum

In the motion filing, Blumberg argues that his statements were opinions on a matter of significant public interest, protected under New York’s anti-SLAPP laws. He claims the case against him is an attempt to suppress free speech on a public issue.

You may not know this, but I’ve been sued by @PrometheumInc . Today we filed a motion to dismiss. Link to the motion here: https://t.co/lIs9E4FRLG

— 50bps Matt (@matt_blumberg) December 16, 2024

Blumberg highlighted that Prometheum’s SPBD license and its classification of cryptocurrencies as securities have sparked political and regulatory debates, raising concerns within the crypto community and among lawmakers.

The motion also alleges that Prometheum pressured Blumberg to issue a favorable public statement, even contacting his mother to deliver the demand, which Blumberg refused.

Courtesy: Blumberg’s motion to dismiss Prometheum’s lawsuit against him

Blumberg maintains that Prometheum’s lawsuit lacks merit and is aimed at silencing legitimate public discourse on the controversial actions of both Prometheum and the SEC. He seeks dismissal of the complaint and reimbursement of his legal costs.

This isn’t the first time Prometheum has come under the crypto industry’s scrutiny. The firm controversially supported the SEC’s stance that existing crypto regulations were just fine, even as much of the crypto industry criticized the SEC’s hard-line approach. Prometheum’s stance ultimately seemed to pay off when it secured a first-of-its-kind special purpose broker-dealer (SPBD) license for crypto-based securities.

Moreover, Prometheum earned a slot in 2023 to testify before Congress about digital assets, which was an opportunity that sidelined better-known and more established crypto firms in favor of the relatively obscure company.

Matthew Blumberg, who also serves as an advisor in the crypto industry, made his comments about Prometheum’s dealings with the SEC on social media after the 2024 presidential election. He referred to Prometheum as “scammers” and suggested that the firm would face repercussions with the change in administration. Prometheum subsequently demanded an apology and a public statement praising their work, which Blumberg refused to issue.

Prometheum then filed a defamation lawsuit, alleging that Blumberg’s comments were false. However, the company has not provided an explanation as to why they were false.

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