Rep. Madison Cawthorn Misdisclosed 2 Dozen More Crypto Transactions

  • Rep Madison Cawthorn is facing an ethics complaint regarding her crypto trades.
  • Cawthorn appears to have again violated the disclosure provisions of the STOCK Act.
  • Congress is actively debating whether to limit or prohibit lawmakers from engaging in certain financial transactions.

Republican Representative Madison Cawthorn of North Carolina appears to have again violated a federal conflict of interest law by failing to properly report purchases and sales of six types of cryptocurrencies, according to a new financial disclosure from Congress.

The reported value of Cawthorn’s recently disclosed crypto transactions is between $290,000 and $950,000, according to his disclosure, which he filed with the U.S. House of Representatives on Wednesday morning.

Cawthorn reported that his trades took place between January and March. According to federal law, he had no more than 45 days to publicly disclose them in a certified document submitted to Congress.

The value of his newly reported crypto transactions is:

  • Kryll, $116,000 to $265,000
  • Ethereum, $61,000 to $215,000
  • Solana, $48,000 to $195,000
  • Bitcoin, $47,000 to $180,000
  • Let’s Go Brandon Coin, $15,000 to $50,000
  • Application, $3,000 to $45,000

Legislators are only required to report the value of these financial transactions within broad ranges.

On Wednesday, Cawthorn also announced that he invested between $100,000 and $250,000 in a staunchly conservative fund – the SPDR S&P 500 ETF, which tracks the performance of the benchmark S&P 500 index. He also disclosed this trade on Wednesday – in time , in accordance with federal law.

Cawthorn’s congressional office did not immediately respond to a request for comment.

Multiple scandals for Cawthorn

Cawthorn’s new disclosures compound the existing financial disclosure issues it faces.

Insider previously reported that the young congressman, who lost his seat last month to a primary challenger, revealed in late May that he purchased up to $250,000 in “Let’s Go Brandon” coins on December 21, 2021.

On Dec. 31, he sold part of his stake in the coin — worth at least $100,001 — but kept some of it. He reported the transaction about four months ago, by which time the disclosure was due.

Although it is not illegal for Cawthorn to buy or sell the cryptocurrencies, he reported each of the transactions more than six months after making them – well beyond the limit required under the Stop Act. Trading on Congressional Knowledge Act of 2012, or STOCK Act.

The purpose of the law is to defend against conflicts of interest and to combat insider trading.

“All financial disclosure documents must disclose ownership interests in virtual currency” with a value greater than $1,000, as well as “purchases, sales, or exchanges of cryptocurrencies,” the committee wrote. House ethics in a 2018 memorandum to lawmakers and members of Congress.

Under congressional rules, Cawthorn could face a minimum fine of $200, but the House Ethics Committee could grant him a waiver that would absolve him of the fine.

Last month, the House Ethics Committee announced that it had formed a subcommittee to investigate in part Cawthorn’s financial dealings.

Insider’s “Conflicted Congress” project and other outlets have identified 63 members of Congress since last year who violated the STOCK Act. At least 182 senior congressional officials also violated the STOCK Act’s disclosure provisions.

Insider also found numerous examples of conflicts of interest among federal lawmakers — both Democrats and Republicans.

News of the purchase of “Let’s Go Brandon” coins – the virtual currency is named after a slur against President Joe Biden – was originally published in the Washington Examiner, which reported that Cawthorn may be in violation of laws. on insider trading. If true, such a crime would fall under the investigation of the Department of Justice and the Securities and Exchange Commission.

Cawthorn faced much controversy during his short tenure that angered GOP leaders. In April, officers cited him for carrying a loaded 9-millimeter handgun inside Charlotte Douglas International Airport.

He had previously been cited but not charged in February 2021 for attempting to bring a gun on a plane in his carry-on at Asheville Regional Airport.

Last month, House Minority Leader Kevin McCarthy publicly berated Cawthorn after he said in a podcast that he saw Republicans in Washington using cocaine and was asked to participate in a orgy.

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