US Congressman May Face Charges for Crypto Pump and Dump Promotions
Quick take:
- Madison Cawthorn, a US congressman, might face charges for his crypto pump and dump schemes.
- He was accused of promoting a pump and dump crypto scheme called Lets Go Brandon (LETSGO).
Madison Cawthorn, a Republican representative from North Carolina, has been accused of being involved in the Let's Go Brandon crypto pump and dump operation (LETSGO).
Several regulatory watchdogs have implicated Cawthorn in an alleged insider trading conspiracy involving the relatively short-lived crypto project, according to a recent story by the Washington Examiner.
Let’s Go Brandon Pump and Dump
The memecoin Let's Go Brandon is named after the slogan ridiculing President Joe Biden. Hedge fund manager James Koutoulas started the initiative.
"LGB legends," Cawthorn said on Instagram on December 29, 2021. “We're going to the moon tomorrow!" He also revealed that he has a small amount of the coin in his portfolio.
Interestingly, on December 30, NASCAR driver Brandon Brown announced that the crypto project would be his primary sponsor for the 2022 season. The news caused a huge outcry, and the LETSGO token skyrocketed by 75%, hitting a market cap of $570 million.
NASCAR unexpectedly denied the project's sponsorship agreement with Brown in January 2022. Insiders who purchased a large quantity of the coins in circulation quickly sold them all.
Consequently, the memecoin's value plunged to zero, leaving investors in a state of bewilderment.
According to a class-action complaint filed by a dissatisfied investor, Koutoulas and other Let's Go Brandon insiders are accused of manipulating the token to organize a pump-and-dump scheme.
The initiative was revived a month after its disastrous failure in January. Koutoulas said that it now had measures to prevent whales from selling all of their stock at once, thus protecting the value.
On the other hand, the project has not taken off and is currently trading at roughly 5% of its high from the original launch. Cawthorn continues to use marketing to promote the Let's Go Brandon token.
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