Ethics panel opens investigation into GOP's Cawthorn
WASHINGTON >> The House Ethics Committee is investigating allegations that Republican Rep. Madison Cawthorn had a conflict of interest in a cryptocurrency he promoted and engaged in an improper relationship with a member of his staff, the panel said Monday.
The investigation is just the latest moment of high-profile scrutiny for the North Carolina Republican, who will be leaving Congress at the end of the year after losing his primary race last week to state Sen. Chuck Edwards. Cawthorn's defeat came despite support for his reelection bid from former President Donald Trump.
Rep. Veronica Escobar, a Democrat from
Texas, and Rep. Michael Guest, a Republican from Mississippi, will lead the review of Cawthorn. The panel cautioned that the opening of the investigation does not mean that he violated House rules.
In a statement, the congressman's chief of staff, Blake Harp said they “welcome the opportunity to prove that Congressman Cawthorn committed no wrongdoing and that he was falsely accused by partisan adversaries for political gain.”
The allegations of a potential conflict of interest stem from an April article in the Washington Examiner that reported Cawthorn may have violated federal insider trading laws when he promoted the meme coin LGB, named for the chant “Let's Go Brandon” mocking President Joe Biden.
Cawthorn promoted the LGB coin in a Dec. 29 Instagram post where he was pictured with the hedge fund manager of the cryptocurrency. The next day, NASCAR driver Brandon Brown announced a deal with the coin, raising questions about whether Cawthorn had advanced nonpublic knowledge of the announcement, according to the Examiner.
The committee did not provide any further details on Cawthorn's alleged “improper relationship.”
The 26-year-old lawmaker's political career has been upended by a series of salacious headlines that contributed to his downfall in last week's primary.