Dem Fundraising Machine Under Fire: Money Laundering Scandal Unfolds

The Democratic National Committee’s primary fundraising platform, ActBlue, is facing mounting scrutiny as Republican lawmakers question its financial operations while the organization undergoes a wave of senior staff departures.

According to a report from The New York Times, at least seven high-ranking officials have left ActBlue since February 21, 2024, prompting concerns about the stability of the organization.

The resignations come amid allegations that ActBlue executives engaged in retaliation against employees, further exacerbating internal strife.

Elon Musk Called This Financial News ‘Terrifying’

The exact reasons behind the staff departures remain unclear. However, labor unions representing ActBlue employees have raised alarms about the pattern of exits, calling it “alarming” and warning that it is “eroding our confidence in the stability of the organization.”

The departures reportedly include:

• Customer service and partnerships directors, both of whom had been with ActBlue for over a decade.
• An associate general counsel, the organization’s highest-ranking legal counsel.
• An assistant research director and a human resources director.
• A software engineer, who had worked at ActBlue for 16 years.

Adding to the turmoil, The Times reported that the last remaining lawyer in ActBlue’s general counsel’s office had his access to email and other internal platforms revoked.

The lawyer is now reportedly on leave.

ActBlue spokeswoman Megan Hughes responded to the reports, stating, “Like many organizations, as we undergo some transition heading into this new election cycle, we are focused on ensuring we have a strong team in place.”

The upheaval at ActBlue comes as the organization faces a congressional investigation into alleged financial misconduct and potential campaign finance violations.

In September 2023, Republicans on the House Oversight Committee launched an investigation into “potential fraud” tied to donations processed through ActBlue.

In a letter to Treasury Secretary Janet Yellen, House Republicans James Comer (R-KY), Nick Langworthy (R-NY), Jim Jordan (R-OH), and Marjorie Taylor Greene (R-GA) stated that the committee was looking into “potentially fraudulent and illicit financial activity” involving campaign donations made through online fundraising platforms like ActBlue.

The lawmakers expressed concerns about the potential exploitation of online platforms to evade campaign finance laws, writing,

“The Committee on Oversight and Accountability is investigating reports of potentially fraudulent and illicit financial activity related to contributions to campaigns of candidates for federal offices mediated by online fundraising platforms like ActBlue.”

They further requested that the U.S. Department of the Treasury provide Suspicious Activity Reports (SARs) relevant to the investigation.

Multiple state officials have also launched probes into ActBlue’s financial activities.

• In August 2023, Virginia Attorney General Jason Miyares raised concerns about suspicious donations made in “volumes that seemed facially implausible.”
• Wyoming Secretary of State Chuck Gray and Missouri Attorney General Andrew Bailey also announced separate investigations into ActBlue.
• In December 2023, Texas Attorney General Ken Paxton launched a probe to determine whether ActBlue’s operations were compliant with all applicable laws.

Critics have alleged that ActBlue serves as a money-laundering operation, allowing wealthy donors to bypass contribution limits and funnel large sums of money to Democratic candidates.

Reminder: @JamesOKeefeIII exposed @actblue fraud 2 years ago.

He deserves a lot of credit for getting this train rolling.pic.twitter.com/QGB4BvjqD1 https://t.co/FSy9Lhq3f9

— R.C. Maxwell (@RCMaxw3ll) March 7, 2025

While no formal charges have been filed, the Republican-led investigations signal intensifying scrutiny over the Democrats’ top fundraising platform.

With ActBlue now facing both internal instability and mounting legal pressure, the organization’s future remains uncertain.

The opinions expressed by contributors and/or content partners are their own and do not necessarily reflect the views of LifeZette. Contact us for guidelines on submitting your own commentary.