David Madison Cawthorn, an American politician is being troubled by the House of Ethics Committee as they directed him to pay more than $15,000 in fines and fees. The reason for the fine is that he encouraged people to buy a cryptocurrency in which he had a financial interest, that was not not properly disclosed.
Mr. Cawthorn has served as the U.S. representative for North Carolina’s 11th congressional district since 2021.
The Committee Report
The Committee wrote in its 81-page report released Tuesday, that Mr. Cawthorn has until the end of the month to pay $14,237.49 — “reflecting the approximate value of the gift he received” — to “an appropriate charitable organization,” and an additional $1,000 in late filing fees to the Treasury Department within 14 days of the report’s release.
The House panel’s investigative subcommittee (ISC) “found substantial evidence that Representative Cawthorn promoted a cryptocurrency in which he had a financial interest in violation of rules protecting against conflicts of interest, and that he failed to file timely reports to the House disclosing his transactions relating to the cryptocurrency,” as per the report.
Moreover the subcommittee “did not find that Representative Cawthorn knowingly or willfully failed to file timely disclosures; nonetheless, the ISC found that he is required by statute to pay the applicable late filing fees for his untimely disclosures.”
It can be seen that the investigations done by the Committee did not find any sufficient evidence of insider trading, efforts to artificially exaggerate the value of the coin or an aim to personally enrich himself.
In addition, the report found no evidence to support allegations this year as the Mr. Cawthorn had an improper relationship with a staffer.
The U.S. representative lost his primary in May and his term ends next month. While his office has no immediate comment over the report.
Mr. Cawthorn paid $150,000 for 180 Billion “Let’s go, Brandon,” or LGB Coin, on Dec. 21, 2021. By that time, Republicans had adopted the phrase as a vulgar expression against President Biden. On the morning of Dec. 22, images could be found on social media of Cawthorn touting the coin.
Reportedly, he “was seen in multiple photographs and videos in which he appeared to support or specifically encouraged individuals to purchase LGB Coin, including after the value of the LGB Coin that he held plummeted.”
But officials did not come to a consensus about whether Mr. Cawthorn “intended to personally profit from his promotional activities.”
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.
Source: https://www.thecoinrepublic.com/2022/12/08/madison-cawthorn-fined-15000-for-crypto-promotion-by-house-panel/