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Madison Cawthorn Facing Indictment For Insider Trading As Part Of Crypto Scheme

Each day seems to bring new controversy and trouble for Rep. Madison Cawthorn (R-NC), and now he’s facing being indicted for insider trading because he took part in a cryptocurrency scheme that crashed and burned.

The Washington Examiner reports:

Rep. Madison Cawthorn may have violated federal insider trading laws as he hyped up an alleged pump-and-dump cryptocurrency scheme, multiple watchdog groups told the Washington Examiner.

On Dec. 29, the beleaguered North Carolina congressman posed at a party with James Koutoulas, a hedge fund manager and the ringleader of the Let’s Go Brandon cryptocurrency, a meme coin set up in the wake of the chant mocking President Joe Biden.

“LGB legends. … Tomorrow we go to the moon!” Cawthorn, who has stated publicly he owns the cryptocurrency, posted on Instagram in response to the picture posted on Koutoulas’s Instagram page.

Cawthorn’s posting suggests that he had “advance nonpublic knowledge” of a deal that had been made with NASCAR driver Brandon Brown, who received sponsorship from LGB, which led to a 75% spike in LGBCoin’s value:

According to watchdogs, “the post, combined with Cawthorn’s statement that he owns LGBCoin, warrants an investigation from the Department of Justice and the Securities and Exchange Commission to determine whether the lawmaker violated federal insider trading laws.”

Dylan Hedtler-Gaudette, the government affairs manager for Project on Government Oversight, a federal watchdog group, said the appearance Cawthorn has given reeks of insider information:

“This does look like a classic case of you got some insider information and acting on that information. And that’s illegal.

“I think there’s probably a strong case here. I don’t want to prejudge, but based on everything that’s out there, I think there is a very strong possibility that if someone is going to investigate this, they’re going to find something.”

LBGCoin, it should be noted, has collapsed in value and is now trading 95% below its peak price, which was reached in late December of last year.

Cawthorn has participated in several events intended to raise awareness and interest from potential investors, including one held in March at a Florida arena:

A fellow Republican has also called for Cawthorn to be investigated for his role in LGBCoin, with Sen. Thom Tillis (NC) saying:

“Insider trading by a member of Congress is a serious betrayal of their oath, and Congressman Cawthorn owes North Carolinians an explanation. There needs to be a thorough and bipartisan inquiry into the matter by the House Ethics Committee. #ncpol

By Andrew Bradford

Proud progressive journalist and political adviser living behind enemy lines in Red America.

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