Congressman Shri Thanedar would have reaped a decent profit of $120,000 if he had held the BTC, LTC, and ETH he recently sold. According to a new statement, his holdings would have been worth at least $486,331.85 if he had not sold the assets before his raise. Congress can trade in stocks and cryptocurrencies; Congress members could face fines of $1,000 for operations that could conflict with their job responsibility.
US Democratic Congressman Shri Thanedar lost at least $120,000 selling Litecoin (LTC), Bitcoin (BTC) and Ethereum (ETH) before their recent price surge. Thanedar lost a potential 30% return on its cryptocurrency holdings as Congress tightens financial disclosure rules.
A presentation on Congress Trading revealed that Thanedar sold between $150,000 and $250,000 worth of BTC and between $100,000 and $250,000 worth of ETH on February 5, 2024.
US Congressman Loses $120,000 in Cryptocurrency Profits
Since the congressman sold his crypto, the prices of these three assets have increased. Following the rise in cryptocurrency prices in February, the congressman would have had at least $330,819 in BTC, $139,156.04 in ETH, and $16,356.23 in Litecoin (LTC). These holdings would have totaled $486,331.85, compared to the $365,000 they were worth when he sold them. These calculations assume that the congressman purchased the minimum amounts in his disclosure, which is $150,000 for BTC, $100,000 for Ethereum, and $75,000 for Litecoin.
Members of Congress are not prevented from investing in stocks and cryptocurrencies, but they cannot do so if there is a conflict of interest. They must also make periodic statements. The United States Code of Ethics for Public Officials prohibits bribery and participation in financial interests that may interfere with duty:
“Employees shall not hold financial interests that conflict with the conscientious performance of duty. Employees shall not engage in financial transactions using nonpublic Government information or allow the improper use of such information to further any private interest.”
In other recent cryptocurrency purchases, Congressman Michael A. Collins revealed an ETH purchase of between $15,001 and $50,000 in January. He purchased between $1,001 and $15,001 of ETH in four separate transactions last December.
Senator Cynthia Lummis (R-Wyo), who is believed to be pro-crypto, revealed a purchase of between $50,001 and $100,000 worth of Bitcoin on August 16, 2021. Congresswoman Alexandria Ocasio-Cortex said in 2021 that she does not purchase Bitcoin to do her job responsibly.
USA: Congress Members Who Did Not Report Their Cryptocurrencies
New York Mayor Eric Adams did not disclose the assets in his wallet to the Conflict of Interest Board in 2021. Adams pledged to have received his first three paychecks in Bitcoin after Miami Mayor Francis Suarez said he would do the same.
Adams’ staff said they had misunderstood the question on a disclosure form and vowed to correct the error. In 2022, a Business Insider report found that North Carolina Republican Madison Cawthorn failed to properly report an investment in the anti-Joe Biden cryptocurrency “Let’s Go Brandon.” He also late reported a purchase of up to $265,000 worth of Ethereum in two purchases during December 2021.
Colorado Republican Lauren Boebert reportedly failed to disclose between $5,000 and $80,000 in crypto investments, stocks and brokerage funds owned by her husband.
Politicians caught trading stocks on insider information while in office can be fined $1,000. If they do not get rid of their holdings within 30 days, they will have to pay $1,000. In addition, 10% of the shares traded in violation of the law.
By Leonardo Perez
