In a “confidential” letter issued Sunday, debtors of fallen crypto giant FTX asked for refunds from Arizona politicians, political action committees, and other beneficiaries. Arizona politicians received at least $33,200; debtors estimate total FTX donations at $93 million, however FTX executives admitted using dark money routes to finance their favored political allies.
The Arizona Democratic Party (ADP); Reps. Ruben Gallego (D-AZ-03), Eli Crane (R-AZ-02), Debbie Lesko (R-AZ-08), David Schweikert (R-AZ-01); and Sen. Mark Kelly (D-AZ) received FTX funding.
Of the $24.7 million given to Republicans, FTX co-CEO Ryan Salame donated $2,900 to Lesko, $2,900 to Schweikert, and $2,900 Crane. Of the $8.4 million given to Democrats, FTX Director of Engineering Nishad Singh donated $2,900 to Kelly. Of his $38 million, FTX CEO Samuel Bankman-Fried donated $11,600 to Gallego and $10,000 to ADP.
As of press time, only Schweikert and Gallego have responded to the FTX scandal by divesting themselves of the funds. Schweikert donated the funds to various, unnamed charitable organizations, while Gallego gave the funds to Rep. Andrea Salinas (D-OR-06) who Bankman-Fried attempted to defeat in the primary election through millions to her opponents.
In a press release, FTX Debtors stated that they have the right to take legal action if these contributions aren’t refunded voluntarily. They noted that any payments or donations to third parties, even charities, could be subject to FTX’s recovery efforts.
Gallego called for an investigation into the FTX collapse, in response to Elon Musk pointing out that Bankman-Fried primarily donated to Democrats.
“Musk knows about crypto schemes. FYI we should investigate FTX collapse,” said Gallego.
For years, Schweikert has advocated for maintaining freedom and limiting government oversight of cryptocurrency and other blockchain technologies. He’s been a longtime member of the bipartisan Congressional Blockchain Caucus, and introduced multiple bills in past years to advance crypto development.
Schweikert hasn’t issued a public comment about his FTX funding either, though he’s listed as having donated the funds.
Earlier this week, bipartisan Blockchain Caucus co-chairs @RepTomEmmer @RepBillFoster@RepDarrenSoto and I, sent a letter to the House of Representatives concerning the Bipartisan Senate Infrastructure Bill being funded by our crypto currency industry. pic.twitter.com/duEHPzD5gu
Donations directly to campaigns weren’t the only ones influencing Arizona politics.
As AZ Free News reported last year, Bankman-Fried gave the most, $27 million, of his funding to a Phoenix-based political action committee (PAC), Protect Our Future PAC. The PAC treasurer, Dacey Montoya, is a key player in the Democratic dark money network. Montoya served as treasurer for Kelly and Gov. Katie Hobbs’ campaign committees, along with numerous other political committees and PACs across at least 16 other states. Montoya also described herself as a friend of Hobbs.
Kelly, along with Gov. Katie Hobbs, gave over $1 million to Montoya for her work.
Protect Our Future PAC shipped its millions outside of Arizona, specifically to 19 Democratic House candidates including Reps. Lucy McBath (D-GA-07), Maxwell Frost (D-FL-10), and Jasmine Crockett (D-TX-30).
Corinne Murdock is a reporter for AZ Free News. Follow her latest on Twitter, or email tips to corinne@azfreenews.com.
The operative whose political action committee (PAC) received $27 million from fallen crypto giant FTX also received over $1 million from committees for Senator Mark Kelly and governor-elect Katie Hobbs.
The operative, Dacey Montoya, also served as the treasurer for these committees. Montoya has been behind numerous other political committees and PACs in Arizona and across at least 16 other states. Usually, those committees also pay her consulting firm, The Money Wheel (TMW).
Montoya serves as the treasurer for the Mark Kelly Victory Fund and Mark Kelly For Senate. TMW received over $832,000 from the two committees over the past two years.
Katie Hobbs’ secretary of state and gubernatorial committees paid TMW about $188,500 over the past four years, with the greatest payouts occurring over the last year. Although Montoya wasn’t listed as the treasurer for either of Hobbs’ campaigns, her firm’s email was listed in the contact information.
That combined $1 million doesn’t include payouts from other political action committees (PACs) and political candidates. (Note: AZ Free News discovered that Montoya’s PACs didn’t always file timely reports, so funds like expenditures, income, and TMW funding may be underreported).
Arizona-based PACs or campaign committees that paid TMW: Outlaw Dirty Money, $61,900; Arizona Pipe Trades 469, $54,000; Invest in Phx, $10,700; Rural Arizonans For Accountability, $10,500; Arizonans For a Just Democracy, $5,500; No On Proposition 126 Committee, $1,200; Solutions for Arizona, $500.
Arizona-based PACs that Montoya ran, and how much they paid TMW: Invest in Education, $504,400; Protect Our Future PAC, $134,500; Way to Lead PAC, $67,800; Moms Fed Up, $52,000; Way to Lead State Power Committee, $49,600; Invest in Education Committee, $40,700; Arizonans For Fair Elections, $40,000; Arizona Families First, $38,900; Change for Arizona 2024 PAC, $31,000; Arizonans For Fair Lending, $27,000; Arizona Future Fund, $25,000; Invest in Arizona, $25,000; Guarding Against Pandemics PAC, $16,000; Families United For Freedom, $15,000; Opportunity For Tomorrow, $11,000; Lead the Way 2022, $9,800; Not Our Faith, $9,200; Liftoff PAC, $3,500; E Pluribus PAC, $9,100; Win the West 2020, $3,100; Win Blue 2020, $2,600; Restore Hope, $2,500; Arizona Washington Victory Fund, $1,800; Arizona Maine Victory Fund, $1,800; Arizona New Jersey Victory Fund, $1,800; Kelly, Cisneros, Rouda, Smith Victory Fund, $1,700; Yes For Phx, $1,400; Saguaro Victory Fund, $1,100; and Arizona New Mexico Victory Fund, $800.
Political candidates for whom Montoya served as treasurer, and how much they paid TMW: Mayor Kate Gallego, $76,300; Reginald Bolding, $51,800; and Jevin Hodge, $42,000.
Political candidates whose campaigns paid TMW: Kirsten Engel, $46,900; Judy Stahl, $11,500; Ann Kirkpatrick, $118,500; and Heather Ross, $36,000.
At minimum, Montoya’s firm has made over $2.7 million over the past few years through Arizona political candidates, committees, and PACs.
Montoya also founded and ran an influential PAC that didn’t pay TMW: Will of the People Arizona, a PAC dedicated to defeating Propositions 128, 129, and 132. In their tweets, the PAC tags multiple progressive organizations in their effort, including Pro-Choice Arizona, LUCHA Arizona, Mass Liberation Arizona, Black Lives Matter Phoenix Metro, Poder in Action, CASE, AZ Coalition 4 Change, Healthcare Rising Arizona, All Voting is Local – AZ, ACLU of Arizona, and Planned Parenthood Advocates of Arizona.
The PAC identified The Arizona Republic as an endorser of their efforts.
Prop 128, allowing the state legislature to amend, divert funds from, or supersede an initiative or referendum found to contain illegal or unconstitutional language, failed; Prop 129, limiting ballot initiatives to a single subject, succeeded; and Prop 132, requiring initiatives and referendums seeking a tax change to receive at least 60 percent of votes, succeeded.
As AZ Free News reported in October, outside funding accounted for 99 percent of the PACs funds. However, the PAC claims on its website that outside funds only amount to 20 percent, and their mailers claimed that number was 43 percent.
The PAC received over $2.1 million from the Service Employees International Union United Healthcare Workers (SEIU-UHW): the California union that largely financed the dark money-fueled Predatory Debt Collection Act, Proposition 209, which voters just approved. Prop 209 essentially makes all debt collection futile. That PAC also received $250,000 from the National Education Association (NEA); nearly $258,600 from the Fairness Project, established by SEIU-UHW; $60,000 from Every Single Vote; and over $51,000 from the Ballot Initiative Strategy Center (BISC). Nearly all of these funds derive from organizations dedicated to influencing the outcome of state-level ballot referendums in favor of progressive policy.
Will of the People Arizona spent over $1.6 million on communications like ads and mailers, and over $66,500 on polling and consulting.
Montoya also runs one of the most powerful leftist dark money organizations: Opportunity Arizona, which receives much of its funding from the Arabella Advisors’ Hopewell Fund.
As of this report, AZ Free News uncovered Montoya’s influence as campaign committee or PAC treasurer, or TMW payee, in at least 16 other states: California, Colorado, Florida, Illinois, Iowa, Louisiana, Maryland, Massachusetts, Nevada, New Jersey, New York, Ohio, Texas, Virginia, Washington, and Wisconsin.
Corinne Murdock is a reporter for AZ Free News. Follow her latest on Twitter, or email tips to corinne@azfreenews.com.
A political action committee (PAC) based in Phoenix received $27 million from the CEO of FTX: the bankrupted cryptocurrency giant under investigation for fraud.
Not only did Protect Our Future PAC receive $27 million from FTX CEO Samuel Bankman-Fried — this PAC was the primary beneficiary of his contributions by far. The PAC treasurer is Dacey Montoya: a name that appears frequently throughout the Democratic dark money network. In the recent past, Montoya also chaired the Way to Lead PAC and Not Our Faith PAC, both organizations that received major funds from Democratic dark money funders like George Soros.
According to the Federal Election Commission (FEC), Bankman-Fried’s millions came via four payments from February to June: $9 million on February 4, $4 million on March 15, $10 million on April 14, and $4 million on June 13.
It appears that Montoya received a good cut of Bankman-Fried’s millions. The Money Wheel, Montoya’s consulting firm, received over $134,500 from February to early July from the Protect Our Future PAC. Protect Our Future and The Money Wheel share the same business address. Her consulting firm often gets paid from the PACs she oversees.
The PAC registered with the FEC in January of this year. Bankman-Fried’s millions account for 94 percent of the PAC’s revenue. Another $1 million came from another FTX executive, Nishad Singh, also on February 4.
Montoya’s other PAC, Opportunity For Tomorrow, contributed nearly $195,000 to the FTX executive-backed PAC. One other major contributor was Everytown For Gun Safety Action Fund, the PAC arm of the gun control organization founded by major Democratic donor Michael Bloomberg.
The Phoenix-based PAC only put $1.26 million back into Arizona through its independent expenditures committee (IEC). From there, the money can’t be traced.
The remainder went to Democratic PACs and candidates in other states, primarily ad campaigns to benefit congressional and state legislature candidates in Oregon, Texas, Michigan, Kentucky, North Carolina, Florida, Ohio, Illinois, California, New York, and New Jersey. According to the PAC’s website, the primary reason for the PAC is to elect candidates focused on preventing pandemics.
The only Arizona candidate to which Bankman-Fried contributed directly was Congressman Ruben Gallego (D-AZ-07): $5,800 in March.
Bankman-Fried also contributed thousands to two other Arizona-based PACS. He gave $5,000 to Guarding Against Pandemics, another Phoenix-based PAC with Montoya serving as treasurer. Bankman-Fried also gave $5,000 to a Phoenix-based PAC sponsored by recently-defeated Congressman Tom O’Halleran’s (D-AZ-01) campaign.
The PAC received brief coverage by Politico in January, about a week after it launched and a week before it got its first contribution from Bankman-Fried.
Corinne Murdock is a reporter for AZ Free News. Follow her latest on Twitter, or email tips to corinne@azfreenews.com.
