Texas Attorney General Ken Paxton has made a criminal referral to the U.S. Department of Justice (DOJ) concerning ActBlue, the prominent Democratic fundraising platform, following an investigation into alleged illegal campaign contributions and potential fraud. This action comes amidst ongoing probes by several state Attorneys General and congressional committees into the platform's donor verification practices and alleged illicit activities. The investigations focus on claims of money laundering, "smurfing," and the use of straw donors.
Attorney General Paxton initiated his investigation into ActBlue in December 2023, citing allegations that the platform might be facilitating illegal campaign contributions. His office reported uncovering evidence suggesting that "bad actors are likely using ActBlue’s platform to make illegal campaign contributions." As a result of this probe, ActBlue began requiring CVV codes for credit card donations in August 2024, a security measure Paxton's office had pushed for.
Beyond Texas, Attorneys General in Virginia, South Carolina, Arkansas, Florida, and Missouri have also launched inquiries or received evidence from congressional investigators. South Carolina Attorney General Alan Wilson, for instance, raised concerns about "smurfing," a money laundering technique where large sums are broken into smaller, less conspicuous donations. Virginia Attorney General Jason Miyares is also examining allegations of donation irregularities.
Concurrently, House committees, including the House Administration Committee chaired by Bryan Steil, have been investigating ActBlue's operations. These congressional probes have issued subpoenas for documents related to donor verification policies and potential vulnerabilities that foreign actors could exploit to illegally influence U.S. elections. Findings have included hundreds of donations from foreign IP addresses using domestic prepaid cards.
ActBlue has consistently dismissed these investigations as "nothing more than a partisan political attack and scare tactic to undermine the power of Democratic and progressive small-dollar donors." The organization maintains it has robust security and fraud prevention measures in place, stating it operates as a technology conduit in strict compliance with federal and state laws. However, the ongoing scrutiny has led to calls for legislative reforms, such as the proposed SHIELD Act, aimed at improving online donation security.
The sentiment that "State AG's were 'investigating' ActBlue for corruption YEARS AGO! Surely we must have enough evidence by now to charge them and take that money-laundering fraud operation off-line," as stated by Bill Mitchell on social media, reflects a public desire for resolution. With a criminal referral now made to the DOJ, the multi-faceted scrutiny on ActBlue's practices continues to intensify.