Democrats’ prized fundraising machine ActBlue finds itself in hot water as federal investigators and multiple state prosecutors circle the organization amid allegations of fraud. The exodus of senior staff and accusations from Republican lawmakers paint a picture of an organization in crisis just as election season heats up.
This isn’t good for the Democrats!
At a glance:
• ActBlue, the Democratic Party’s primary fundraising platform, faces accusations of operating as a money laundering operation
• At least seven senior officials have resigned amid growing internal turmoil
• Republican lawmakers claim the platform enables donors to bypass contribution limits
• ActBlue allegedly accepts donations without requiring credit card security codes, potentially enabling fraud
• Over a dozen state attorneys general, the US Congress, and the FBI have launched investigations into the platform
Money Laundering Allegations Rock Democratic Fundraising Giant
Republican lawmakers have escalated their scrutiny of ActBlue, the Democratic Party’s primary fundraising platform, with serious accusations that it may operate as a money laundering operation. The House Oversight Committee has launched a formal investigation into these allegations, requesting Suspicious Activity Reports from the U.S. Department of the Treasury.
Former House Speaker Newt Gingrich warned that “illegal contributions through this Democratic fundraising platform could threaten election integrity and warrant close scrutiny.” ActBlue processes billions in political donations but now faces questions about whether its practices enable fraudulent contributions.
Critics allege that wealthy Democratic funders use ActBlue to circumvent legal contribution limits by funneling money through multiple channels to candidates. Reports indicate the platform accepts donations without requiring credit card security codes, a practice that could enable fraudulent donations.
A Republican strategist claims his identity was stolen to make hundreds of unauthorized donations through ActBlue, including contributions to Vice President Kamala Harris. Security experts note the Federal Election Commission does not scrutinize donations under $200, creating a potential loophole for fraudulent activity.
Internal Chaos as Senior Staff Flee Troubled Organization
ActBlue is experiencing unprecedented internal turmoil with at least seven senior officials resigning since February 21, including longtime directors of customer service and partnerships. The mass exodus has raised alarms among Democratic officials who rely on the platform to fuel their campaigns.
Two unions representing ActBlue workers sent a scathing letter to the board of directors highlighting the concerning pattern of departures. The last remaining lawyer in the general counsel’s office reported being cut off from email and other platforms, suggesting possible internal retaliation.
ActBlue spokeswoman Megan Hughes attempted to downplay the situation, stating: “Like many organizations, as we undergo some transition heading into this new election cycle, we are focused on ensuring we have a strong team in place.” Her statement failed to address the specific reasons for the wave of resignations.
The timing of this internal collapse couldn’t be worse for Democrats, coming just months before a crucial presidential election where online fundraising will play a pivotal role. None of the departed officials have spoken publicly about their reasons for leaving.
Multiple state-level investigations have launched into ActBlue’s operations, with Virginia Attorney General Jason Miyares and Texas Attorney General Ken Paxton taking the lead. Paxton began his investigation in December 2023 to determine whether ActBlue is complying with applicable laws regarding political contributions.
Newt Gingrich noted the potentially massive scale of the problem, saying: “ActBlue is the remarkably successful online fundraising system that the Democrats have been developing now for years. This year, it probably will raise a billion dollars off of credit cards. Except it now turns out that a part of ActBlue may be open to fraud on a pretty grand scale.”
Over a dozen State Attorneys General have joined forces with Congress and the FBI in investigating the platform’s fundraising practices. These investigations could potentially reveal significant fraudulent and foreign contributions to Democratic campaigns, undermining the legitimacy of their funding sources.
Republican lawmakers have also advanced legislation that could potentially weaken ActBlue’s operations, adding to the mounting pressure on the troubled Democratic fundraising giant. The organization faces an uncertain future as investigations proceed and staff continue to abandon ship.
