Madison Cawthorn’s crypto promotion is being investigated by the US House Ethics Committee for possible insider trading
The House Ethics Committee said on May 23 that it is investigating North Carolina Representative Madison Cawthorn for the illegal promotion of cryptocurrencies. The investigation is looking at whether Cawthorn marketed a cryptocurrency in which he had an unreported financial interest unlawfully. The probe will also look at whether Cawthorn had an inappropriate connection with a member of his congressional staff.
The Investigative Subcommittee will be chaired by the Honorable Veronica Escobar, according to the press announcement. The Honorable Michael Guest, who will serve as the Ranking Member, will work with Escobar. The Honorable Lisa Blunt Rochester and the Honorable Michelle Fischbach are the other two members of the Investigative Subcommittee.
The inquiry has commenced, according to the panel, but it does not indicate there was a violation. Cawthorn may have broken federal insider trading rules after supporting an alleged pump-and-dump crypto scam, according to the Washington Examiner. During a party on December 29, 2021, Cawthorn took a photo with James Koutoulas, a hedge fund manager and the organizer of the Let’s Go Brandon cryptocurrency.
Let’s Go Brandon (LGBCoin) is a meme currency mocking President Joe Biden. Cawthorn promoted the coin by writing, “LGB legends… In response to the photo Koutoulas uploaded on Instagram, he said, “Tomorrow we travel to the moon!” Brandon Brown, a NASCAR racer, stated on December 30 that the meme currency would be his principal sponsor for the 2022 season. As a result, the value of LGBCoin increased by 75%. Brown’s statement included remarks from Koutoulas, who had only hours earlier uploaded a photo with Cawthorn.
Several watchdogs accused Cawthorn of knowing about LGBCoin’s arrangement with Brown before it became public. Cawthorn’s declaration of possessing LGBCoin, according to authorities, merits an investigation by the Department of Justice and the Securities and Exchange Commission to see if he broke federal insider trading laws. Cawthorn alleged he was the target of a planned drip campaign after hesitating to engage with White House colleagues in Washington following suspicions of insider trading. Cawthorn also claimed to have seen high officials take cocaine.