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ACT Blue Under Fire: A Fundraising Giant’s Tangled Web

Writer's picture: Lynn MatthewsLynn Matthews

Hooded figure with glowing mask using a laptop in a dark room. U.S. flag in background. Mysterious, intense mood.

ACT Blue has processed over $13.7 billion for Democratic campaigns and progressive causes since 2004, a figure that cements its status as a fundraising titan. In the 2023-2024 election cycle alone, it hauled in $3.8 billion, with spikes like $200 million in the week after Joe Biden’s July 2024 exit and $90 million in the 24 hours following Kamala Harris’s nomination. Built as a conduit for small-dollar donations—charging a 3.95% fee on credit card transactions—it reports funds as individual contributions, not PAC handouts, under Federal Election Commission (FEC) rules. On paper, it’s a grassroots dream. But as of March 10, 2025, cracks are widening: allegations of fraud, whispers of foreign influence, and a sudden staff exodus signal a machine that may be less pure than it seems.

Today, X is buzzing. Elon Musk’s March 9 post blamed George Soros and Reid Hoffman for Democratic funding woes (no evidence offered), while posts about ACT Blue’s February 2025 staff turnover—seven senior executives gone, including its last lawyer—fuel speculation of collapse or cover-up. House GOP probes, state investigations, and James O’Keefe’s exposés have dogged the platform since 2023, painting a picture of vulnerabilities too big to ignore. This isn’t a conspiracy screed; it’s a map of the smoke. Untangle the strings—ACT Blue, Soros, Hansjörg Wyss, Arabella Advisors, and a 2010 Supreme Court ruling—and the danger to democratic integrity becomes impossible to dismiss.


ACT Blue 101: The Engine and Its Numbers

Founded in 2004 by Benjamin Rahn and Matt DeBergalis, ACT Blue operates as a political action committee (PAC) designed to streamline online giving for Democrats and left-leaning groups. It’s processed $13.7 billion by mid-2024, per its own totals, dwarfing rivals. The 2023-2024 cycle’s $3.8 billion included massive hauls tied to pivotal moments—$200 million after Biden stepped aside, $50 million in Ohio after a 2023 abortion ballot win. A separate nonprofit arm, funded by donor tips, covers operational costs. It’s efficient, user-friendly, and ubiquitous—over 1.6 million donations flowed through it in 2024 alone.


But scale invites scrutiny. Until late 2023, ACT Blue didn’t require CVV codes for credit card donations, a gap Texas AG Ken Paxton called a “freeway for fraud.” They’ve since tightened up, but the prior laxity left room for exploitation—room now under a microscope.


The Smurfing Scandal: Cracks in the Foundation

In March 2023, James O’Keefe’s O’Keefe Media Group (OMG) dropped a bombshell: “MASSIVE Money Laundering into Political Campaigns.” Combing FEC data, OMG found donors—often elderly or low-income—listed for thousands of small donations they didn’t recall making. A Maryland woman, unaware of 1,000+ gifts totaling $20,000. Cornelius Maneaux of New Orleans, “not employed,” tied to 847 donations worth $18,276 from 2021-2022. Patterns emerged: repetitive micro-donations, some as low as $2.50, often via prepaid cards or gift cards—untraceable payment methods ACT Blue accepted pre-2023 CVV rules.


“Smurfing”—splitting large sums into small, disguised chunks to dodge scrutiny—isn’t new, but O’Keefe argued that ACT Blue’s system begged for it. Donations under $200 don’t require detailed FEC reporting; For example, if you break a $1 million gift into 400,000 $2.50 hits, it becomes a ghost. No foreign source was proven, but the implication—China, Ukraine, anyone, anywhere could donate to the American political system—lit up conservative media.


The GOP pounced. House Oversight Chairman James Comer and House Administration Chairman Bryan Steil launched probes in 2023. By October 2024, Steil subpoenaed ACT Blue for donor verification records, citing “potential criminal activity”. Comer tapped Treasury for Suspicious Activity Reports (SARs), uncovering hundreds of odd transactions linked to ACT Blue—small, frequent gifts dwarfing donors’ means. Texas AG Paxton’s December 2023 investigation found “suspicious actors” using obscured identities; by August 2024, he noted ACT Blue’s CVV cooperation but kept the case open. A September 2024 congressional report echoed O’Keefe: “unlawful exploitation of straw donors.”

No smoking gun names a mastermind. But the sheer volume—200 million contributions analyzed—suggests a system ripe for abuse.


The Dark Money Web: Soros, Wyss, and Arabella

ACT Blue’s official line: its billions come from millions of grassroots donors. Dig deeper, and a darker pool emerges, enabled by a 2010 Supreme Court ruling and fueled by billionaires George Soros and Hansjörg Wyss through Arabella Advisors’ network.


Citizens United: The Floodgates Open

In 2010, Citizens United v. FEC (558 U.S. 310) declared unlimited political spending by corporations, unions, and individuals as free speech, as long as it’s not direct campaign contributions. Dark money—undisclosed funds via 501(c)(4)s and super PACs—soared from $5 million in 2006 to $1 billion in 2020. Here’s the twist: David Bossie, head of Citizens United, became Trump’s 2016 deputy campaign manager, shaping a system he’d later decry when Democrats mastered it. ACT Blue doesn’t take dark money directly, but its ecosystem thrives in this post-2010 chaos.


George Soros: The Globalist Donor

Soros, worth $6.7 billion, has funneled billions through Open Society Foundations (OSF) since 1979—$1.6 billion globally in 2022 alone. From 2018-2022, OSF gave $153.5 million to Arabella’s four nonprofits, including $70.7 million to Sixteen Thirty Fund. In 2021, $23.9 million went to Sixteen Thirty for “voter engagement” in battleground states. In 2020, Sixteen Thirty spent $55 million on pro-Biden super PACs like Priorities USA. Soros’s reach—voter drives, media, judicial fights—amplifies Democratic turnout, feeding ACT Blue’s surges like that $200 million post-Biden exit.


Hansjörg Wyss: The Swiss Shadow

Wyss, an 89-year-old Swiss billionaire worth $5 billion, lives in the U.S. on an E-2 visa—and under 52USC 30121 is barred from direct campaign gifts. Since 2016, he’s pumped $475 million into progressive causes via Berger Action Fund, including $283 million to Arabella’s Sixteen Thirty Fund and New Venture Fund. His past is messy: $160,000 in illegal direct donations from 1990-2006 went unpunished. Sixteen Thirty’s $37 million in 2024 ballot measures—$11 million for Ohio’s abortion rights win, and $4 million in Arizona—drove turnout ACT Blue cashed in on.


Arabella Advisors: The Hub

Arabella’s Sixteen Thirty Fund (501(c)(4)) and New Venture Fund (501(c)(3)) are dark money powerhouses. Sixteen Thirty raised $1.5 billion since 2016, spending $410 million in 2020 to flip the Senate and Presidency. New Ventures’s spent $1 billion since 2016 funding media like States Newsroom.


Arabella Advisors Overlap With ACT Blue

Groups that Arabella Advisors backed include $12 million to League of Conservation Voters in 2024 and $15 million to Planned Parenthood Votes using Act Blue as their cash collector.


The Sticky Thread

FEC records don’t show George Soros or Hansjörg Wyss wiring money directly to ActBlue—no trace of it exists there. But their millions still fuel the machine indirectly. Take, for example, the Sixteen Thirty Fund’s voter turnout campaign in 2020 or the ballot efforts that sparked waves of small-donor cash contributions, demonstrating that smurfing could indeed be the hidden link between Wyss’s $283 million and Soros’s $153 million (that oddly enough land in the vicinity of Arabella’s 2020 expenditures that come in at $410 million) that was chopped up into tiny, untraceable donations—though without bank records, that’s still speculation.


Red Herrings: USAID and Law Firms

Numerous X posts claim that USAID’s $40 billion budget secretly funded ACT Blue via NGOs—a taxpayer money laundering scheme. Although, no grant records or FEC filings back this; it’s a hypothesis born of distrust, not evidence. Law firms like Perkins Coie showed up as individual donors, which is standard for left-leaning lawyers, but not as bankrollers. ACT Blue’s September 2024 hire of Covington & Burling to lobby against the GOP’s SHIELD Act is a defensive move and not a funding pipeline.


The 2025 Exodus: A Breaking Point?

In February of 2025, ACT Blue’s leadership unraveled. Seven senior executives, some with a decade’s tenure, left within three weeks. Zain Ahmad, the last in-house counsel, posted on Slack on February 26th that his email and platform access were cut and prior messages were deleted—he’s now on leave. No official reasons were given for this mass exodus; however, internal strife, financial strain, or legal heat from Comer, Steil, and Paxton’s investigations appear to be the impetus for this unusual departure, posing a glaring red flag.


Why This Matters: A System at Risk

ACT Blue’s scale—$13.7 billion, with 1.6 million donations in 2024, makes it a juggernaut; however, its vulnerabilities are stark:

  • Untraceable Cash: Pre-2023 CVV gaps and smurfing allegations suggest that billions could have been misreported. O’Keefe’s seniors and Treasury’s SARs aren’t anomalies, they are symptoms.

  • Foreign Influence: Wyss, the Swiss billionaire and his $475 million contribution, skirted U.S. laws via Arabella, while Soros’s $153.5 million, although legal, amplified the same machine. If, even a fraction of their donations flow through ACT Blue’s small-donor flood, it is meddling by proxy.

  • No Accountability: Citizens United built this—dark money and lax oversight let Sixteen Thirty’s $410 million in 2020 and ACT Blue’s $3.8 billion in 2023-2024 coexist without transparency. Bossie’s Trump tie only deepens the irony.


With the 2026 election cycle rapidly approaching, the danger is that if elections could potentially be bought, not by candidates, but rather by shadow organizations using surfing, i.e., dicing up large contributions into smaller undetectable $2.50 donations, then the outcome of the elections can not be trusted.


The Full Picture: Smoke, No Fire—Yet

ActBlue has not been charged, much less convicted. There are no subpoenas that directly tie Wyss’s $283 million or Soros’s $153.5 million to ActBlue accounts. USAID is a ghost story, and law firm chatter is just static. However, the web of alleged corruption, Citizens United, Arabella’s billions, smurfing’s eerie likelihood, and ActBlue’s staff jumping ship has the odor of mendacity. Reasonable minds can not unsee this: A fundraising giant, tied to dark money titans with unchecked loopholes that allow them to disguise their multi-million dollar donations as small donor contributions. The FEC, the Treasury Department, and state AGs are circling the wagon. Keep your eyes peeled and check WECU Media for updates because if the winds of corruption blow those embers, the flames won’t stop at ActBlue.


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