An investigation into the online fundraising platform ActBlue has expanded to include 19 states, as attorneys general across the country question the company’s security practices and its potential role in facilitating illegal campaign donations.
The inquiry, which began with a handful of states and a House committee, now encompasses nearly half the country as concerns mount over whether ActBlue has been used to launder foreign money or make “straw donations”—a process where donations are made in individuals’ names without their consent.
State attorneys general have raised alarms that donations through ActBlue may have been improperly attributed to individuals who did not actually make them.
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In a letter sent to ActBlue CEO Regina Wallace-Jones last week, the attorneys general pointed to potential security lapses that may allow such unauthorized donations to occur.
“Recent reporting suggests that there may be donors across the country who are identified in filings with the Federal Election Commission as having donated to candidates through ActBlue (and other affiliated entities), but who did not actually make those donations,” the letter stated.
The letter raised concerns about whether ActBlue’s platform is being used to facilitate “smurfing”—a form of money laundering where large donations are broken into smaller amounts under different names to disguise the true source of the funds.
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Such practices could violate both state and federal campaign finance laws.
The investigation also seeks to determine whether political donations, particularly in large volumes, are being made and processed in compliance with campaign finance and consumer protection laws.
ActBlue has played a significant role in election-related fundraising, having raised billions of dollars during the 2024 election cycle alone.
In response, ActBlue has denied any wrongdoing and expressed its willingness to cooperate with investigators.
A spokesperson for the platform told The Des Moines Register, “We rigorously protect donors’ information by maintaining a robust security program and strict fraud prevention measures—often beyond what is required by law.
We are aware of recent attempts to spread misinformation about our platform. Facts are essential so that voters and donors are not misled.”
The letter from the attorneys general, led by Iowa and Indiana, was also signed by the top law enforcement officials from Alabama, Arkansas, Florida, Idaho, Kansas, Mississippi, Missouri, Montana, Nebraska, North Dakota, Oklahoma, South Carolina, South Dakota, Utah, Virginia, West Virginia, and Wyoming.
They requested that Wallace-Jones respond by October 23 with information verifying ActBlue’s security protocols and outlining how the platform ensures donors are who they claim to be.
This investigation comes amid parallel probes into ActBlue’s operations. House Administration Committee Chairman Bryan Steil (R-WI) recently referred the platform to attorneys general in Arkansas, Missouri, Texas, Virginia, and Florida.
Steil’s committee conducted an extensive computer analysis that reportedly uncovered suspicious donation patterns from individuals whose financial status suggests they could not afford the amounts credited to them.
Steil said in a statement that his investigation focused on the potential exploitation of “straw donors”—individuals whose identities may have been used to funnel illicit funds into political campaigns. “The final analysis produced a set of anomalous donor profiles, ranked by the severity of the inconsistencies,” Steil wrote to the state officials. “In reviewing this analysis, it became clear there is suspicious activity occurring that warrants further review.”
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Texas Attorney General Ken Paxton opened an investigation into ActBlue in December 2023, accusing the platform of fraudulent activity.
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In December 2023, we opened an investigation into the major fundraising platform ActBlue to determine whether their operations are compliant with all applicable laws.… https://t.co/PaxCeUKD2v
— Attorney General Ken Paxton (@KenPaxtonTX) August 8, 2024
Paxton reached an agreement with ActBlue in August 2023, requiring the platform to begin using card verification value (CVV) codes for all donations—a key security measure to prevent fraud.
That same month, Virginia Attorney General Jason Miyares also launched an inquiry into ActBlue after similar allegations of fraud surfaced in his state.
Steil has been pushing H.R. 9488, also known as the SHIELD Act, which aims to enhance safeguards for online campaign donations by requiring the disclosure of CVV codes and prohibiting campaign contributions made in someone else’s name. “The real big concern here is that because these donations are made online, they could be coming from anywhere across the globe,” Steil said in an interview with Just the News in August.
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As the investigation into ActBlue expands, the company faces increasing scrutiny over its fundraising practices and the possibility that foreign or illicit funds may be flowing through its platform.
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