US House Ethics Committee launches insider trading probe into Madison Cawthorn’s crypto promoting

The U.S. House Ethics Committee is investigating North Carolina Representative Madison Cawthorn implicit the improper promotion of cryptocurrencies, the committee unveiled connected May 23.

The probe seeks to find whether Cawthorn mightiness person improperly promoted a cryptocurrency successful which helium mightiness person had an undisclosed fiscal interest. 

Additionally, the probe seeks to find if Cawthorn engaged successful an improper narration with an idiosyncratic connected his legislature staff.

The property merchandise further noted that the Honorable Veronica Escobar would service arsenic the Investigative Subcommittee’s Chair. Escobar volition enactment alongside the Honorable Michael Guest, who volition service arsenic the Ranking Member. The different 2 members of the Investigative Subcommittee are the Honorable Lisa Blunt Rochester and the Honorable Michelle Fischbach.

The subcommittee said the probe had begun, but it does not mean that a usurpation occurred.

Alleged insider trading

Previously, Washington Examiner reported that Cawthorn whitethorn person gone against national insider trading laws aft promoting an alleged pump-and-dump crypto scheme. Specifically, Cawthorn posed for a representation with James Koutoulas, a hedge money manager and the ringleader of the Let’s Go Brandon cryptocurrency, during a enactment connected December 29, 2021.

Let’s Go Brandon (LGBCoin) is simply a meme coin that sought to mock President Joe Biden. Promoting the cryptocurrency, Cawthorn posted, “LGB legends… Tomorrow we spell to the moon!” connected Instagramn effect to the representation that Koutoulas posted connected Instagram.

On December 30, NASCAR operator Brandon Brown announced that the meme coin would beryllium the superior sponsor of his 2022 season. As a result, LGBCoin surged 75%. Brown’s connection comprised comments from Koutoulas, who had posted a representation with Cawthorn conscionable a fewer hours before.

Consequently, aggregate watchdogs accused Cawthorn of having anterior nonpublic cognition of LGBCoin’s woody with Brown. To this end, the regulators asserted that Cawthorn’s disclosure of owning LGBCoin warrants an probe from the Department of Justice and the Securities and Exchange Commission to find retired if helium violated national insider trading laws.

Cawthorn denies allegations

Following the accusations of insider trading, Cawthorn claimed helium was the unfortunate of a coordinated drip run owed to declining to prosecute with White House colleagues successful Washington. Cawthorn besides claimed to person witnessed starring authorities officials utilizing cocaine.