Madison Cawthorn implicated in potential insider trading scheme, experts say

[RandySF]

EXCLUSIVE — 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.

The next day, LGBCoin did exactly as the lawmaker predicted.

NASCAR driver Brandon Brown announced on Dec. 30 that the meme coin would be the primary sponsor of his 2022 season, causing LGBCoin's value to spike by 75%. Brown's statement featured comments from Koutoulas, who was pictured with Cawthorn just a few hours prior.




https://www.washingtonexaminer.com/news/house/madison-cawthorn-implicated-in-potential-insider-trading-scheme-experts-say

[tanyev]

1. Wow, he's having a spectacular week.

[rurallib]

7. like watching a meteor burn up in the atmosphere in slow motion

[dchill]

2. Beleaguered? This asshole is SELF-beleaguered!

Criming the ladder of success.

[empedocles]

3. Ah. multiple watchdog groups on the case.

Did cawthorn sell? If so, when?

[That should be an easy find for investigators]

[RandySF]

6. But, with crypto being largely unregulated, do insider trading laws apply?

[empedocles]

8. From the Examiner article

' . . .But Hedtler-Gaudette, the government affairs manager for POGO, said that even if LGBCoin isn't considered a security, that won't render Cawthorn immune from insider trading laws.

"No matter what, though, having advance and nonpublic information that is then used to gain advantage in a financial market (including straight up commodities) is illegal, making my call for DOJ or SEC investigation still operative in this case," Hedtler-Gaudette said.

Holman, the Public Citizen government affairs lobbyist, added that Cawthorn would need to disclose if he purchased over $1,000 of the coin — even if it isn't considered a security for regulatory purposes. . . '

[RandySF]

9. +1

[calimary]

4. "... go to the moon", Madison?

By all means, dude! Go! And then please stay there!

[rso]

5. Cawthorn

Sounds like an open and shut case, Cawthorn does not have a leg to stand on.

[oldtime dfl_er]

10. I saw what you did there

[sarcasmo]

11. Insider trading, 3 driving without a license, 2 guns in an airport busts.