State attorneys general from 19 states are investigating the Democratic fundraising platform ActBlue for alleged illegal fundraising practices. The investigation, which began in Texas, centers on whether ActBlue facilitated fraudulent donations using “straw donors” to violate campaign finance laws.
The probe initially focused on suspicious donation patterns, where individuals with a low net worth were reported to have made large contributions.
Investigators are concerned that these donors may not have been aware their names were being used. The practice of “smurfing,” which involves splitting large donations into smaller amounts under different names, has also been flagged as a potential tactic to evade donation limits.
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ActBlue has denied any wrongdoing, describing the allegations as disinformation, and claims it complies with campaign finance laws.
The platform has implemented new security measures, including requiring credit card verification codes for all donations. Despite this, the attorneys general have requested further details from ActBlue on its security protocols, with the company expected to respond by Oct. 23.
The multistate investigation is expected to continue expanding, with the attorneys general warning that this case could have broader implications for how political donations are monitored in the future.