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Last month, Texas Attorney General Ken Paxton demanded a Department of Justice investigation into ActBlue after finding evidence of fraudulent donations being laundered through the organization.  The Gateway Pundit reported that Paxton had found a network of potentially illicit donations that were made using false identities and untraceable payment methods.

The ActBlue smurfing scheme was uncovered previously by the work of ElectionWatch.info's Peter Bernegger and reported by James O'Keefe of O'Keefe Media Group.  The scheme involves using the identities of thousands of retired senior citizens to "donate" often thousands of times using small dollar donations.  When O'Keefe confronted some of the larger donors, they were shocked to discover the donations were made on their behalf.

This scheme is not only identity theft, but it could also lead to tax implications for the unsuspecting victims of this fraud.

After AG Paxton's October 2024 letter calling on the DOJ to investigate and the Federal Elections Commission (FEC) to propose rule changes, the FEC has sought public comment on "contributions through untraceable electronic payment methods."

The public record states that the commission is seeking to adopt two amendments to 11 CFR 104.14 regarding the use of credit cards to make contributions.  It states:

First, the petition requests an amendment to 11 CFR 104.14(b)(5) to provide that records for contributions made by credit, debit, prepaid, or gift card must include documentation confirming that a cross-check occurred between the contributor's self-reported identifying information with the card issuing institution's own information on the name and billing address of the cardholder.