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Madison Cawthorn under investigation by House Ethics committee over crypto promotion

Madison Cawthorn
TL;DR Breakdown
  • The House Ethics Committee is looking into North Carolina`s Rep. Madison Cawthorn for possible misconduct in relation to cryptocurrency promotion. 
  • The asset in question is the Let’s Go Brandon token.
  • Madison`s Cawthorn`s investigation point to insider trading.

Madison Cawthorn is a well-known figure in the realm of ethics investigations and serious misconduct. The House Ethics Committee is presently investigating Rep. Madison Cawthorn for his possible violation of congressional rules regarding cryptocurrency promotion. According to the committee Monday, Mr. Cawthorn may have had an undisclosed financial stake.

Madison Cawthorn under house investigation over crypto promotion

The news of the special counsel investigation, announced Monday, appears to be linked to “Let’s Go Brandon,” a meme coin. The U.S. House of Representatives is reportedly conducting an inquiry into Rep. Madison Cawthorn’s (R-N.C.’s) alleged pump-and-dump of the “Let’s Go Brandon.”

In a statement issued Monday, the House Committee on Ethics announced an inquiry into whether Cawthorn “improperly promoted a cryptocurrency in which he may have had an undisclosed financial interest.”

“LGB legends…tomorrow we go to the moon!” According to The Washington Examiner, Cawthron reportedly stated on Instagram the night before that news broke. After that Instagram post, the token skyrocketed. It has since plummeted.

Congressman Madison Cawthorn is a controversial lawmaker with few allies in his party. Calls for a congressional ethics inquiry have erupted as a result of his alleged insider trading. The investigation must move swiftly: Cawthorn saw defeat in last week’s primary election. The defeat came after a slew of political opposition research and allegations about his mental stability in the news.

The “Let’s Go Brandon” token, which is the object of this lawsuit, was created as an anti-Biden cryptocurrency. Cawthorn has claimed to possess the crypto. Furthermore, according to The Washington Examiner news outlet, the data regarding the asset would sponsor NASCAR driver Brandon Brown a day before it got announced.

Rep. Madison Cawthorn is a polarizing figure in the American political arena, and citizens have often dubbed him as one of the provocative legislators. According to the announcement, the committee also looked into whether Rep. Madison Cawthorn had an “improper relationship” with someone employed on his congressional staff. The official statement reads:

In accordance with House Rule XI, clause 3, and Committee Rules 10(a)(2) and 18, the Committee unanimously voted on May 11, 2022, to establish an Investigative Subcommittee. Pursuant to the Committee’s action, the Investigative Subcommittee shall have jurisdiction to determine whether Representative Madison Cawthorn may have: improperly promoted a cryptocurrency in which he may have had an undisclosed financial interest, and engaged in an improper relationship with an individual employed on his congressional staff.

House of Ethics press release.

North Carolina’s Rep. Cawthorn falls under a closer examination into the crypto industry by the U.S. government

The Ethics Committee green-lit the investigation with a unanimous vote on May 11. However, it only made the information public six days after docking Cawthorn’s bid for a second term in the Republican Party primary, depriving him of a nomination for another term in Congress.

After a string of failures, Cawthorn’s career has seen yet another hit. He got arrested by law enforcement in North Carolina for carrying a loaded handgun at an airport. He additionally got charged with driving with an invalid license. He also claimed that he was the target of “blackmail” after a video leaked showing him naked in bed with another man.

Representative Cawthorn has been known for his bold claims, including claims that some of his older colleagues had invited him to orgies and used drugs in front of him, which has prompted outrage among fellow Republicans in Congress.

Following the announcement of a new inquiry into him, he tweeted, “Wow- I must still be a problem for the swamp! They’re still coming for me!” He referred to the political establishment popularized by President Donald Trump.

His aggressive declarations are unlikely to assist his case. The United States is in a period of increased government regulation of the cryptocurrency industry. The United States has not been hesitant to state that it wants crypto to follow the same rules as traditional currency. Madison Cawthorn’s investigation, for example, is a sign that they are not overlooking non-compliance issues when it comes to cryptocurrency legislation.

The regulatory framework has yet to get implemented in full. However, there are signs of its development. Various agencies have laid out their plans, and the regulations are gradually getting established. A digital currency issued by the United States Central Bank is also under consideration.

Cryptocurrencies are likely to have a major impact on politics and fundraising in the future, as adoption rises and new politicians come of age. As a result, legislators will regulate them the same way, implying oversight.

Thom Tillis, a Republican senator from North Carolina, has requested that the Ethics Committee looks into Madison Cawthorn for possible insider trading in connection with cryptocurrencies. According to The Washington Examiner, Madison Cawthorn may have violated laws prohibiting investors from profiting on non-public knowledge.

In response to the Ethics inquiry, Blake Harp, Cawthorn’s chief of staff, stated that: 

We welcome the opportunity to prove that Congressman Cawthorn committed no wrongdoing and that he was falsely accused by partisan adversaries for political gain […] Our office isn’t deterred in the slightest from completing the job the patriots of Western North Carolina sent us to Washington to accomplish.

Blake Harp.
Florence Muchai

Florence Muchai

Florence is a crypto enthusiast and writer who loves to travel. As a digital nomad, she explores the transformative power of blockchain technology. Her writing reflects the limitless possibilities for humanity to connect and grow.

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