Key Takeaways:
- Molly White and Public Citizen filed a complaint alleging Coinbase violated campaign finance laws by securing a Marshals Service contract and donating $25 million to a pro-crypto PAC.
- Coinbase’s legal officer argued the company isn’t a federal contractor since the funds used aren’t Congressionally appropriated.
- Critics, including Rick Claypool, called for stricter FEC enforcement, highlighting large contributions by Coinbase and issues within the crypto industry.
Coinbase and critics are disputing whether a government contract for custodying seized crypto violates campaign finance laws.
Molly White and Public Citizen filed a complaint to the Federal Election Commission, alleging Coinbase violated these laws by negotiating a Marshals Service contract in March and donating $25 million to the pro-crypto Fairshake Super PAC in May.
Last week, @Public_Citizen’s @RickClaypool and I filed a complaint with the Federal Election Commission based on my research into apparent campaign finance violations by the Coinbase cryptocurrency exchange.
— Molly White (@molly0xFFF) August 5, 2024
Read the full complaint and my updated article. pic.twitter.com/F6fK5fvxXT
Coinbase’s legal officer, Paul Grewal, argued that Coinbase isn’t a federal contractor since the Marshals Service doesn’t use Congressionally appropriated funds.
However, White and Public Citizen’s updated complaint asserts that the Assets Forfeiture Fund is Congressionally appropriated.
Grewal countered, saying the funds came from seized assets, not Congress.
Seized crypto assets are not Congressionally appropriated funds, period. There is nothing new in the FEC complaint filed by a self-described crypto critic and Public Citizen’s research director, but it is notable that there is no minimum bar to file such a complaint, and this one…
— paulgrewal.eth (@iampaulgrewal) August 5, 2024
He noted Coinbase’s equal donations to Democratic and Republican PACs.
Rick Claypool of Public Citizen criticized Coinbase’s large contributions and called for stricter enforcement by the FEC.
White highlights crypto industry issues and spending on her platforms.
About The Author
Victor Fawole, a seasoned Web3 content creator and social media influencer, excels in bringing the pulse of the crypto world to our readers.
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