Special Investigations

Press Freedom Defense Fund

Crypto Spends Big in Illinois House Races to Say Consumer Rights Supporters Are Corrupt

A crypto PAC smeared one progressive backed by Bernie Sanders as a “corporate pawn” and spent millions calling another a tax cheat.

The cryptocurrency industry has a new line of attack against candidates who have voted for consumer protections on digital coins: calling them corrupt.

In at least two Illinois congressional primaries, candidates vying for the progressive vote are being accused by a crypto political action committee of corruption. Fairshake PAC is trying to smear one candidate backed by Sen. Bernie Sanders, I-Vt., as a corporate tool and another candidate who successfully fought a federal indictment as a tax cheat.

“One of the most corrupt actors in the country is trying to appropriate an anti-corruption argument.”

“One of the most corrupt actors in the country is trying to appropriate an anti-corruption argument.”

The industry has thrown at least $3.3 million into negative attacks on the campaigns in the 2nd and 7th Congressional Districts thus far, according to an analysis from a Chicago political consultant. That spending represents only a fraction of the PAC’s war chest for the remainder of the primary season.

“Ironically, we’re in a very anti-corruption moment, and you know that is true because one of the most corrupt actors in the country is trying to appropriate an anti-corruption argument,” said Jeff Hauser of the Revolving Door Project, a crypto industry critic. “The threat is that the cynical deployment of an anti-corruption politics undermines the potential for success of a genuine anti-corruption politics.”

Fairshake declined to comment.

In both races, crypto industry interests are attacking Democratic candidates — state Sen. Robert Peters and state Rep. La Shawn K. Ford — who voted for consumer protection regulations on cryptocurrency in the Illinois statehouse last year.

That legislation, supported by Democratic Gov. JB Pritzker, forces crypto companies to register with the state and comply with local rules if they want to serve Illinois residents. Crypto companies have long opposed state-level regulations, preferring a single set of looser regulations at the federal level.

As the congressional elections heated up this year, the crypto industry began........

© The Intercept