He might face charges for the violation of insider trading laws. Madison, a Republican Congressman from North Carolina, has been tagged for his involvement in a pump and dump crypto scheme called Let’s Go Brandon.
Let’s Go, Brandon, the pump and dump coin
“LGB legends. … Tomorrow we go to the moon!”Cawthorn posted on Instagram
Well, the LGBCoin did exactly pump the next day, as he claimed. He also claimed that the coin is a part of his portfolio.
Surprisingly, Brandon Brown, a NASCAR driver, made an announcement on December 20 that the coin would sponsor the 2022 season. The announcement spiked its value by almost 75%.
Cawthorn’s Instagram post and Brown’s statement are said to have some alleged personal knowledge about the coin, as stated by some watchdogs.
According to the watchdogs, Congressman Cawthorn’s declaration that he owns LGBCoin merits an inquiry by the Department of Justice and the Securities and Exchange Commission to see if the congressman broke federal insider trading rules.
But the investors who dumped their money into the coin following Brown’s announcement were in for a huge disappointment.
NASCAR rejected the partnership with LGBCoin, and insiders who had a share of their coin dumped all of it at once, causing the market value of the LGBCoin to evaporate into thin air.
The rapid rise and fall of the meme coin prompted one disgruntled investor to launch a class-action lawsuit in April alleging Koutoulas and other LGBCoin insiders of orchestrating a pump-and-dump scam using the digital currency.
Even though Cawthorn isn’t tagged as a defendant in the class-action lawsuit, he is listed as one of LGBCoin’s celebrity endorsers, who aided Koutoulas in inflating the coin’s market value before the scandal.
In February, Koutoulas reintroduced LGBCoin, saying that the second version of the meme currency had limits that prevented “whales,” or persons with large holdings in the coin, from selling all of their units at once.
LGBCoin has traded roughly 95% below its high price established in late December since its reintroduction in February.
Despite the meme coin’s terrible performance, Cawthorn has continued to tour the country with Koutoulas, advertise his asset ownership, and encourage his fans to buy it.