US Congress to Grill Rep. Madison Cawthorn Over Alleged Involvement in Crypto Scheme
Madison Cawthorn, former Republican Congressman of North Carolina, has been accused by some of being involved in insider trading
US Capitol Building | Credit: Shutterstock
key takeaways
- Madison Cawthorn of North Carolina will face allegations he was involved in a crypto pump and dump scheme
- Cawthorn is also being investigated over allegations he had an “improper relationship” with a congressional staff member
An investigation of Republican Congressman Madison Cawthorn is expected sometime this year that will determine the extent of his alleged involvement in a crypto pump and dump scheme.
According to a statement on Monday, Cawthorn will face four members of Congress in a subcommittee over his alleged involvement in promoting what is suspected to be the Let’s Go Brandon crypto scheme.
“The Committee notes that the mere fact of establishing an Investigative Subcommittee does not itself indicate that any violation has occurred,” the statement reads.
The US House Ethics Subcommittee, to be chaired by Texan Democrat Veronica Escobar, will look at whether or not Cawthorn abused his position and promoted the project while determining whether he may have had an “undisclosed financial interest” in it.
Cawthorn is also being investigated over his alleged “improper relationship” with a congressional staffer.
The project, known as Let’s Go Brandon, touts itself as an ERC-20 decentralized meme token “inspiring positivity and patriotism.” The project also purports to feature an “anti-whale” dumping mechanism that prohibits foundation supporters and large bag holders from selling the token within a sixth-month timeframe.
Since April 23, the token has shed 83% of its value and was last seen trading for a fraction of a cent, near zero. The token represents the Let’s Go Brandon movement which is a stand-in, among right-wing circles, and a reference to US President Joe Biden. Its true meaning stands for “F—- Joe Biden.”
A class-action lawsuit against the token’s founders, brought forward by one jilted investor, is accusing the founders of orchestrating a pump-and-dump scheme.
Cawthorn, who has taken to social media on several occasions to promote the token, has been caught up in allegations he “swindled” people and willingly promoted the scheme. Republican senator Thom Tillis called on Congress last month to investigate instances of insider trading and demanded Cawthorn answer to North Carolinians.
The 26-year-old, who became one of Congress’ youngest members, lost the party primary contest last week in the Republican-held rural 11th district of North Carolina by a tight margin of around 1,500 votes.
Dubbed a political firebrand by many critics and proponents, Cawthorn was once hailed as a rising star within the far-right faction of the Republican Party who rode on the coattails of Trumpism when he was elected in 2020.
Cawthorn fell out of favor with his Republican colleagues when he insinuated that some Republican members of Congress had invited him to an orgy.
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