Congressman Will Pay Over $14K Fine for Violating Crypto Policy

• Madison was found violating the rules of Legislators.  

Madison Cawthorn, a Republican representative of North Carolina, has been instructed to compensate more than $14,000 for his involvement in a crypto pump and dump scheme in 2021. 

The House Ethics Committee approved an investigative subcommittee’s investigation report on December 1, 2022, Which found that Cawthorn had disobeyed House rules by expressing his interest in a supposed crypto token known as LGB coin without disclosing it before. 

However, it’s not unlawful for legislators to exchange digital currencies; they should report their purchases no less than 45 days before making them, as per the Act. For Cawthorn’s situation, he announced his ventures just about 5 months after the fact than what was required.

As per reports, Cawthorn bought 180 billion LGB coins for just $150,000 on December 21, 2022, before unloading them on three occasions over an 18-day interval. Cawthorn also promoted the token online and in person multiple times after its price had tanked 80% in April.   

Cawthorn is supposed to pay a sum of $14,237 to an “appropriate charitable organization” by December 31, 2022, and will also have to pay $1,000 as late filing fees to the US Department of the Treasury by December 20, 2022. 

Members of the subcommittee commented in the report that “Representative Cawthorn did not disclose either his purchase or sales of his LGB coin until after the Committee established the ISC.”  

The ISC failed to agree on whether Cawthorn planned to profit personally from his promotional activities. The total fine amount arises from the ISC’s inability to differentiate whether Cawthorn intentionally or knowingly engaged in the scheme.

LGB coin acclaimed itself as an ERC-20 meme coin “inspring positivity and patriotism.” The full form is the Let’s Go Brandon movement which was a stand-in among right-wing communities and a reference to US President Joe Biden. Its true meaning was “F-Joe Biden.”  

The cry is directed toward the present President of the United States and his increasing incompetence. Things began this late summer following the failure in Afghanistan, which left countless Americans, friends, and billion-dollar equipment behind as the country’s 20-year war came to a sudden and violent conclusion.

A lawsuit is still in court against the promoters of LGB tokens, including James Koutoulas, a hedge fund manager. 

Madison was also investigated over his alleged “improper relationship” with a congressional staffer. ISC quoted in its reports that it did not find any appropriate evidence to support the claims of relationships. 

It is also believed that Madison lost his reelection with a margin of 1500 votes because of controversies against him before the election held in North Carolina. 

Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.

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