The House Ethics Committee hits Republican Rep. Madison Cawthorn with a $15,000 fine for violating multiple rules when he invested and promoted cryptocurrency "Let's Go Brandon."
The Committee directed the Congressman to use the fine to donate to a charity after its investigation found substantial evidence that he improperly prompted crypto while in office.
The North Carolina Representative's Brief Stint Is Riddled With Controversy
Issues regarding drugs and sexual misconduct have surfaced about Cawthorn in the past, but his recent involvement with Let's Go Brandon is what warranted the fine ordered by the Committee.
According to Coin Telegraph, the Committee reeled in on the congressman's promotional commentary and undisclosed purchase of $150,000 worth of tokens in December 2021.
He promoted Let's Go Brandon (LETSGO), which was named after the slogan and meme used as a substitute to the profane phrase Republicans use against President Joe Biden.
The purchase was paid to an unnamed person involved with the cryptocurrency, and saw Cawthorn receive 180 million LETSGO with a trading value of around $164,200 at the time.
However, the Committee did not reach a consensus on whether the Representative purchased the crypto coins to personally profit from them, or that he used private information in his transactions.
Still, Gizmodo writes that the situation is what prompted the House Ethics Committee to begin its investigation of Cawthorn's potential violation of insider trading laws.
Additionally, the Committee says that he failed to disclose his stake in LETSGO in time, which he should not have been promoting on social media at all.
Furthermore, the Investigation Subcommittee also notes that the fact that Cawthorn was given a deal in his purchase of the crypto tokens made it an acquisition of improper gifts.
"The ISC unanimously recommended that Representative Cawthorn be required to repay the value of the improper gift and pay all applicable fees for his late filing of disclosures for his cryptocurrency transactions," the reports says.
As mentioned before, the amount to be paid out should go to a charitable organization, and the Representative is also ordered to give $1,000 off the $15,000 fine to the US Treasury Department.
Multiple Watchdog Groups Tipped The Committee About The Incident
NBC News reports that the probe comes around after complaints were filed in April by American Muckrackers PAC, naming watchdog groups that claim that the lawmaker has been breaking laws in a cryptocurrency scheme.
He was also accused of having an inappropriate intimate relationship with one of his aides, which the Subcommittee did not have enough evidence to prove.
While Cawthorn has not commented on this matter as of writing, he indicated that the remaining investment he has with LETSGO is just equal to more than $350.
However, the Investigation Subcommittee disputed this claim, noting that his valuation is incorrect and uncles as the value of Cawthorn's tokens was substantially lower at the time the report was filed.
The Congressman, who still seems unbothered promoting his crypto coins, lost the his reelection bid for North Carolina's May Republican primary to Chuck Edwards.
