Cocaine And Orgy Scandal Congressman Now Accused Of Crypto Pump And Dump

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Last Updated on 29 May 2022 by CryptoTips.eu

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US Representative Madison Cawthorn lost his seat for North Carolina last week as he couldn’t get re-elected (even though he was endorsed by former president Donald Trump). Now the young man who became famous for the ‘orgy and cocaine’ scandal could be in even more trouble as he admitted that he sold upward of $250,000 of the ‘Let’s Go Brandon’ meme cryptocurrency on December 31st, 2021, the day the small crypto peaked.

As many investors lost thousands of dollars since, given that the meme coin lost 100% of its value in the week after its spike, Madison could face multiple lawsuits.

Unlike Bitcoin or Ethereum, pump and dump coins tend to be much smaller crypto coins held by only a few individuals. Via social media they make sure that the coin spikes, after which the initial owners sell and take their profits, and then the price deflates leaving those who bought in on the coin losing all their money.

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Orgy and cocaine

Madison Cawthorn became a household name in the US when he accused his Republican colleagues of hosting orgies and snorting cocaine. The young congressman was in return scandalized by most of his Republican counterparts and even got arrested when he brought a gun (repeatedly) to an airport.

Cawthorn also got involved in an insider crypto trading scheme apparently, profiting from the now famous ‘let’s go Brandon’ shout. Together with a business acquaintance, he boosted the LGB (Let’s go Brandon) coin and posted on Instagram on 29 December that the coin would become and “LGB legends. … Tomorrow we go to the moon!”

LGB indeed spiked in the following two days (Cawthorn only held his investment for 10 days, during which point it was boosted by an incredible 97%), at which point Cawthorn sold and netted an estimated $250,000 in profit.

In the following days however, the coin fell in a classic pump and dump scheme and even went to zero, leaving many Republican fans of the young politician penniless.

This looks like a pretty classic ‘pump and dump’ scheme.

Explained Jordan Libowitz, a spokesman for Citizens for Responsibility and Ethics in Washington.

Did he have inside information? It sure appears that way, Libowitz said. He announced it was going to spike the next day. The next day it spiked, and then he sells a portion of it. We don’t know exactly how much he sold since he said it’s partial, but he sells it the next day.