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Outgoing Rep. Cawthorn Hit with $14K Crypto Promo Fine from Ethics Committee

Outgoing Rep. Madison Cawthorn was ordered to donate $14,237.49 to charity as a result of an ethics investigation into his promotion of the controversial Let’s Go Brandon (LGB) coin.

The House Committee on Ethics began the investigation into Cawthorn’s activities in May and, to that end, empaneled a subcommittee to determine if the North Carolina congressman “improperly promoted a cryptocurrency in which he may have had an undisclosed financial interest,” according to the recently published report. The investigation also included an inquiry into a potential improper relationship with a member of his staff, but no evidence was found to substantiate such a claim, it adds.  

“The [Investigative Subcommittee] 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,” according to the committee’s findings. “Representative Cawthorn also failed to file timely reports to the House disclosing his transactions relating to the cryptocurrency.”

The coin was created in the wake of a NASCAR Xfinity Series driver Brandon Brown’s win at Talladega Superspeedway in the fall of 2021, who, while being interviewed by reporter Kelli Stavast, was the subject of a chant she identified as “Let's Go Brandon.” Many, however, heard a more critical phrase directed at President Joe Biden. In either case, the coin, in addition to countless pieces of merchandise and other marketing materials, sought to capitalize on the popularity of the expression.

A deal between Brown and the coin’s proprietors followed, but a NASCAR-sanctioned sponsorship agreement was subsequently blocked by the racing association. As such, the decision to disallow a formal NASCAR sponsorship agreement meant Brown would not be allowed to alter his car’s paint or decal configuration, although he did contract with the coin’s creators in a separate off-track deal, per a Forbes report from January.

Cawthorn was one of many public figures who sought to capitalize on the phrase and coin’s publicity. His dealings, though, eventually became the target of a Congressional investigation and now sanction. In addition to being found to have broken conflict-of-interest rules, Cawthorn was also found to have purchased the cryptocurrency “on more generous terms than were available to the general public, resulting in an improper gift,” notes the report.

Kimberly Leonard @leonardkl

"Members of Congress routinely violate the STOCK Act, but they rarely get fined for it. Penalties are uneven. Today, Madison Cawthorn was ordered to pay $15,237.49 in fines by House Ethics Committee for promoting ‘LGB Coin’ cryptocurrency"

Leonard is referring to the combined fine and the $1,000 late filing fee.

The report points to several instances in which Cawthorn was shown to be an active participant in the promotion of the coin. For example, he made “direct and unambiguous comments about purchasing or supporting a cryptocurrency in which he had invested, and did so in contexts that he reasonably should have known would be used for public promotion,” reads the report.

He was also found to have used his personal social media account to comment on and share promotional materials, adds the committee’s investigation.

As of press time, LGB coin was trading at $0.0000000008, according to data from Coinbase.

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