According to RealClearInvestigations senior reporter Paul Sperry, the group will use profits from processing fees to expand their operations.

BREAKING: Sources say ActBlue, the nonprofit Democrat fundraising platform under investigation for funneling money from China through straw donors, is planning to expand by using millions in reserves from processing fees to acquire companies in the “political technology space.”

BREAKING: Sources say ActBlue, the nonprofit Democrat fundraising platform under investigation for funneling money from China through straw donors, is planning to expand by using millions in reserves from processing fees to acquire companies in the "political technology space."

— Paul Sperry (@paulsperry_) November 23, 2024

Many have speculated that much of Kamala Harris’s massive fundraising haul during her short presidential run came from foreign interests, particularly China, and were laundered using straw donations on ActBlue’s platform. The Republican-led House is investigating multiple discrepancies in ActBlue’s shady practices.

As Sperry noted earlier:

DEVELOPING: It appears House investigators subpoenaing Regina Wallace-Jones for credit-card security docs believe she’s working at ActBlue’s Somerville, Mass HQ, but records show she works from her $1.8 mil home in E. Palo Alto, CA. It also appears she’s canceled her X account…

DEVELOPING: It appears House investigators subpoenaing Regina Wallace-Jones for credit-card security docs believe she's working at ActBlue's Somerville, Mass HQ, but records show she works from her $1.8 mil home in E. Palo Alto, CA. It also appears she's canceled her X account…

— Paul Sperry (@paulsperry_) November 23, 2024

The Harris campaign was able to accumulate well over a billion dollars in donations, mostly through small-dollar donors. But the results of the 2024 election contradict her allegedly massive popularity, further highlighting the possibility that many if not most of her donations through ActBlue were fraudulent.

A straw donation is when a previous donor through ActBlue has his or her personal information registered for new donations. This is how large sums from China or elsewhere can be illegally laundered. All that is necessary through the ActBlue portal for reporting is name, address, and occupation which are part of the public record.

Investigative journalist James O’Keefe has been reporting since last year how he and his team have asked multiple elderly donors about donations made in their names without their consent or knowledge. He believes 60% of those donations came from China.

ActBlue’s CEO, a BLM activist who has worked with Barack Obama and other leftwing icons, is at the center of this scandal. According to Sperry:

NEW: Records show the ActBlue CEO under subpoena to account for $400 mil in potentially fraudulent donations to Dems worked as a Facebook gatekeeper during the Hunter Biden laptop censorship. Regina Wallace-Jones is also a BLM activist who organized for Obama and supported Kamala

NEW: Records show the ActBlue CEO under subpoena to account for $400 mil in potentially fraudulent donations to Dems worked as a Facebook gatekeeper during the Hunter Biden laptop censorship. Regina Wallace-Jones is also a BLM activist who organized for Obama and supported Kamala

— Paul Sperry (@paulsperry_) November 21, 2024

Incoming Attorney General Pam Bondi should make investigating ActBlue her second priority once at the helm of the Department of Justice.

ActBlue should be ended and its executives should be investigated.

Instead, they're growing and being rewarded.

This should be @PamBondi's second focus, immediately after helping to clear the J6ers.

— JD Rucker (@JDRucker) November 23, 2024

According to Paxton, foreign money as well as domestic money that is greater than the legal limits are being funneled through “straw donations” to enrich Democrat campaigns and leftist causes.

As he noted on 𝕏:

Our investigation into ActBlue has uncovered facts indicating that bad actors can illegally interfere in American elections by disguising political donations.

It is imperative that the FEC close off the avenues we have identified by which foreign contributions or contributions in excess of legal limits could be unlawfully funneled to political campaigns, bypassing campaign finance regulations and compromising our electoral system.

I am calling on the FEC to immediately begin rulemaking to secure our elections from any criminal actors exploiting these vulnerabilities.

BREAKING: Our investigation into ActBlue has uncovered facts indicating that bad actors can illegally interfere in American elections by disguising political donations.

It is imperative that the FEC close off the avenues we have identified by which foreign contributions or… pic.twitter.com/8E5vfaYxDL

— Attorney General Ken Paxton (@KenPaxtonTX) October 21, 2024

Here’s the news story from Bethany Blankley at The Center Square:

AG Paxton: Texas Investigation Into ActBlue Uncovers Suspicious Donations

(The Center Square) – A nearly year-long investigation into ActBlue, a Democratic Party online donation platform, alleges a large number of suspicious donations have been made, resulting in Texas Attorney General Ken Paxton petitioning the Federal Election Commission to get involved.

On Monday, Paxton petitioned the FEC to consider implementing new regulations to prevent straw donations from being made on online political fundraising platforms.

Since launching the investigation, Paxton said it’s been publicly reported that potentially fraudulent transactions have occurred on political committee online platforms.

“Certain platforms appear to facilitate straw donor transactions, where a contributor disguises his identity by attributing his contribution to another, unaware person,” the petition states.

Alleged straw donations are being made through the use of prepaid credit cards, which he says “are a favorite tool of fraudsters.”

Paxton’s office launched an investigation into ActBlue in December to determine if the platform’s operations were compliant with all applicable laws. In response to the investigation, Act Blue implemented a new measure in August requiring donors using credit cards to provide “CVV” codes. Paxton says this alone isn’t enough to prevent straw political donations from being made.

The OAG’s investigation says it found a large number of suspicious donations that were made “through obscured identities and untraceable means,” necessitating FEC action.

Through the use of prepaid cards it “appears that straw donations are systematically being made using false identities, through untraceable payment methods,” Paxton said.

Texas’ FEC petition includes partially redacted findings from the OAG’s investigation and recommends that the FEC implement regulations to close fundraising loopholes “that jeopardize American election integrity.” The FEC previously considered implementing such regulations, which ActBlue vocally opposed.

ActBlue’s opposition “is no longer tenable” in light of Texas’ investigation, Paxton said. “If not corrected by the FEC, bad actors can – with trivial ease – illegally funnel foreign money into American elections, exceed political contribution limits, and more.”

“Certain platforms appear to facilitate straw donor transactions, where a contributor disguises his identity by attributing his contribution to another, unaware person,” the petition states.

Alleged straw donations are being made through the use of prepaid credit cards, which he says “are a favorite tool of fraudsters.”

Paxton’s office launched an investigation into ActBlue in December to determine if the platform’s operations were compliant with all applicable laws. In response to the investigation, Act Blue implemented a new measure in August requiring donors using credit cards to provide “CVV” codes. Paxton says this alone isn’t enough to prevent straw political donations from being made.

The OAG’s investigation says it found a large number of suspicious donations that were made “through obscured identities and untraceable means,” necessitating FEC action.

Through the use of prepaid cards it “appears that straw donations are systematically being made using false identities, through untraceable payment methods,” Paxton said.

Texas’ FEC petition includes partially redacted findings from the OAG’s investigation and recommends that the FEC implement regulations to close fundraising loopholes “that jeopardize American election integrity.” The FEC previously considered implementing such regulations, which ActBlue vocally opposed.

ActBlue’s opposition “is no longer tenable” in light of Texas’ investigation, Paxton said. “If not corrected by the FEC, bad actors can – with trivial ease – illegally funnel foreign money into American elections, exceed political contribution limits, and more.”

ActBlue says it’s raised more than $15.8 billion online since 2004.

In the third quarter of fiscal 2024, it says “6.9 million unique donors gave over 31 million contributions to 18,396 campaigns and organizations, totaling over $1.5 billion.”

“This quarter was the largest in ActBlue history,” it said.

Donors gave small amounts totaling $4.2 million to pro-abortion organizations in the quarter, a more than 208% increase from Q3 of 2020. They also gave small amounts totaling more than $5 million to pro-gun control groups, a 48% increase from the same period in 2020, it says.

ActBlue notes that 67.4% of all contributions were made with a saved payment method or digital wallet; 71.8% were made from a mobile device, a 14.8% increase from the third fiscal quarter of 2020.

“The record-breaking surge of small-dollar donations in Q3 2024 has clearly demonstrated the power of grassroots energy in shaping America’s political landscape,” ActBlue said. “As the Democratic Party heads into the final stretch of the campaign, these contributions are fueling races across the country, from local contests to the presidential election. Democrats are positioned to fight for victory in November, driven by this commitment and enthusiasm.”

Last month, U.S. House Oversight Chair Rep. James Comer, R-Ky. raised concerns with the Treasury Secretary that ActBlue was being used to evade campaign finance laws, The Center Square reported.

The federal and Texas investigations were launched after U.S. Sen. Marco Rubio, R-Florida, demanded answers from the FEC in April 2023 about ActBlue’s “schemes to garner illegal campaign donations.”

Rubio cited reports saying that “numerous individuals, including senior citizens, have purportedly donated to ActBlue thousands of times a year” but many “had no idea that their names and addresses were being used to give thousands of dollars in political donations, with most of these ‘donations’ going to ActBlue. It should come as no surprise that ActBlue serves as a vessel for fraud, considering the intentional lack of security engrained within their donation processes and systems.”

Over the last several months, ActBlue has argued that small donations represent “a new standard for grassroots political engagement. Donors from across the nation showed incredible generosity and a new sense of energy and momentum in electing Democrats up and down the ballot.”

The review involved donation reports from ActBlue, an online Democratic fundraising platform, to the Federal Election Commission, according to Rep. Bryan Steil (R-Wis.), chairman of the House Administration Committee.

“This investigation focused on potential unlawful exploitation of unwitting ‘straw donors,’ whose identities may have been used to channel illicit funds into campaigns in your state,” Steil wrote in a Sept. 18 letter to the attorneys general.

Steil sent letters and information collected over the past year to Texas, Virginia, Arkansas, Florida, and Missouri for further investigation into ActBlue.

“The final analysis produced a set of anomalous donor profiles, ranked by the severity of the inconsistencies. In reviewing this analysis, it became clear there is suspicious activity occurring that warrants further review,” the letter stated.

ActBlue did not require a card verification value (CVV), according to Steil, which made it vulnerable to foreign and illegal contributions.

ActBlue did not immediately respond to a request for comment from The Epoch Times.

The platform has denied any wrongdoing.

“This investigation is nothing more than a partisan political attack and scare tactic to undermine the power of Democratic and progressive small-dollar donors,” the organization said in a statement on Aug. 2 as Virginia announced it was opening an investigation.

Republicans have resorted to “political attacks and spreading false accusations” because they can’t accept that millions of Democrats are donating, according to the group’s statement.

In December 2023, Texas Attorney General Ken Paxton opened an investigation into ActBlue alleging the platform “may enable fraud.”

Paxton said in an Aug. 8 statement ActBlue has cooperated with the Texas investigation and will now require CVV codes for credit card contributions.

In his letter to attorneys general, Steil said whistleblowers reported “anomalies” in Federal Election Commission donor records.

That prompted a data analysis of records spanning 14 years, which looked for suspicious trends by comparing donation patterns to open-source consumer data, voter rolls, and political profiling databases.

The ensuing investigation included consultations with the election commission, the Financial Crimes Enforcement Network, and the Office of Foreign Assets Control, according to Steil’s letter.

Findings included donations that were significantly disproportionate to a person’s net worth or previous giving history; uncharacteristic donations from party-affiliated registered voters that suddenly contributed to candidates of the opposing party; and unusually frequent donations from the elderly and first-time donors.

Information, including donor data, was forwarded to state law enforcement agencies due to the “potential criminal activity” surrounding the political contributions, the letter stated.

Last month, Steil asked the election commission for an emergency rule requiring political campaigns to verify the CVV of donors who contribute online by credit or debit cards and prohibiting campaigns from accepting online contributions from gift cards or other prepaid credit cards.

Steil introduced HR 9488, which would require new procedures and safeguards for online donations to U.S. political committees.

Similar concerns were raised in March 2023 by O’Keefe Media Group, which reported that some senior citizens in Maryland and elsewhere denied making the donations attributed to them in Federal Election Commission records.

Donors contacted by O’Keefe Media Group said they made political contributions to ActBlue but had no knowledge of making what amounted to thousands of donations—with some totaling more than $200,000—in a few years.

The media group found similar anomalies in data from WinRed, a Republican platform similar to ActBlue. The House Administration Committee has not said it is investigating WinRed.