Then-Rep. Madison Cawthorn (R-N.C.) arrives for the State of the Union address at the U.S. Capitol in Washington, on March 1, 2022. (Saul Loeb/Pool/Getty Images)
Rep. Madison Cawthorn (R-N.C.) is being investigated by the House Ethics Committee over alleged insider dealing in cryptocurrency and an alleged improper relationship with one of his staff members.
The 10-member panel of the House Ethics Committee unanimously voted on May 11 to establish a subcommittee to investigate whether Cawthorn may have “improperly promoted a cryptocurrency in which he may have had an undisclosed financial interest, and engaged in an improper relationship with an individual employed on his congressional staff,” it announced Monday afternoon.
The committee did not give further details on the alleged “improper relationship.”
“The Committee notes that the mere fact of establishing an Investigative Subcommittee does not itself indicate that any violation has occurred,” it added.
The Washington Examiner reported in April that watchdog groups believed Cawthorn may have violated federal insider trading laws by promoting a cryptocurrency coin “LGB,” one day before it announced a partnership with NASCAR driver Brandon Brown. LGB stands for “Let’s go Brandon,” a phrase that has been used by people to mock President Joe Biden.
Commenting on the investigation, Blake Harp, Cawthorn’s chief of staff, said in a statement: “We welcome the opportunity to prove that Congressman Cawthorn committed no wrongdoing and that he was falsely accused by partisan adversaries for political gain.”
Cawthorn had previously addressed some insider trading allegations in an Instagram post in early May, however, it is unclear whether the allegations concern the same case being investigated by the House Ethics Committee.
“This one just pushing an allegation that I have been involved in insider trading. It’s ridiculous,” Cawthorn said of an unspecified report about him, adding, “A quick search would have revealed the information that I had ‘insider knowledge’ of was publicly available on Instagram. Make no mistake, I believe that decentralized cryptocurrency is a way to remove centralized government control of our finances. Even a quick glance of the story reveals how shallow the claims really are.”
Separately, the committee said it would not investigate misdemeanor charges filed against Cawthorn for driving with a revoked license and speeding in March.
“Representative Cawthorn informed the Committee he has paid a fine to resolve one of the charges and intends to pay any fines associated with the remaining charges,” the committee said (pdf), adding it believes local authorities can handle the matter.
Cawthorn, 26, lost his re-election bid last week to Rep. Chuck Edwards in the Republican primary race for North Carolina’s 11th congressional district.
Then-Rep. Madison Cawthorn (R) speaks to voters at a meet and greet event in Columbus, N.C., on April 30, 2022. (Jackson Elliott/The Epoch Times)
The loss comes after the junior lawmaker received press coverage in the weeks leading up to May 17 primary over several controversial incidences.
Cawthorn said that certain unnamed lawmakers on Capitol Hill of having offered him drugs and inviting him to sexual gatherings. The accusation was made during an interview on a podcast in March, drawing criticisms from some Republican colleagues, including House Republican Leader Rep. Kevin McCarthy (R-Calif.) who said Cawthorn had no evidence for such claims.
In late April, photos were published of Cawthorn wearing women’s lingerie. He said the incident took place long before his congressional term and was part of a game on a cruise ship, where his mother was also present. Separately, a video was published showing Cawthorn naked, which he dismissed as something that happened years ago when he was “being crass with a friend, trying to be funny,” and “joking.”
Also recently, Cawthorn was condemned by McCarthy after calling Ukrainian President Volodymyr Zelenskyy a “thug.” Cawthorn was later cited for having brought a loaded gun into Charlotte Douglas International Airport on April 26. Cawthorn said in a video explaining recent media reports about him, that he made a mistake in having forgotten to disarm himself while going through a TSA checkpoint.
Cawthorn in late April said he was being targeted by a coordinated “drip campaign” from “the establishment and the RINOs” to undermine his reelection bid.
“There is a coordinated movement to attack the freshman conservative congressman in their re-elections (most difficult election) who challenge the regime and the Uni-party. Rino senators and establishment pawns want us to go back to the days before Trump,” he wrote in an Instagram post. “They want to go back to the days of not being on offense, not fighting for the next generation, not trying to dismantle the federal government’s overreach, we will never go back. That is why the establishment is trying to crush me and others, they attack what they fear. Onward!”
Cawthorn thanked former President Donald Trump for having endorsed his reelection bid. Trump, a day prior to the primary, had called on Republicans to “give Madison a second chance.”
“When Madison was first elected to Congress, he did a great job. Recently, he made some foolish mistakes, which I don’t believe he’ll make again…let’s give Madison a second chance!” Trump wrote on his Truth Social account.
“When Donald Trump has your back, he has your back to the end,” Cawthorn said before he conceded to Edwards.
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