Pro-Adams super PAC funded by cryptocurrency delays spending disclosures to city panel.
A super PAC associated with the cryptocurrency industry is under scrutiny following revelations that it failed to promptly report its expenditures to New York City’s campaign finance regulators. This oversight, which has been reported by Media News Source, could potentially result in substantial fines for the political action committee (PAC) as Mayor Eric Adams gears up for his reelection campaign.
Empower NYC, founded earlier this year by attorney Abe George, has allocated over 0,000 toward advertising, consultancy, and grassroots efforts aimed at mobilizing voters for the upcoming November election. Mayor Adams, currently facing challenges as an independent candidate, has been a vocal advocate for attracting cryptocurrency investments to New York, particularly amid ongoing political challenges stemming from a corruption indictment.
The PAC has managed to raise over million thus far, with strong backing from donors within the cryptocurrency sector. Recent spending and fundraising details of Empower have been detailed in submissions made to the New York State Board of Elections; however, timely disclosure to the New York City Campaign Finance Board (CFB) has been lacking. City law mandates that PACs must report expenditures exceeding ,000 on a weekly basis. Empower’s financial filings indicate that it surpassed this threshold as of July 21 but did not begin disseminating information to the CFB until well after this deadline.
George maintains that the PAC has adhered to all relevant state and city regulations. He explained that recent expenditures on advertising and voter mobilization were not initiated until two weeks ago, owing to what he described as “login issues” with the CFB’s portal system. Yet, this delay leaves Empower potentially over a week behind in its required reporting.
The consequences of late reporting can be severe, as CFB penalty guidelines stipulate fines of up to 25% of the unreported expenditure, which, in Empower’s case, could amount to ,000 for approximately 0,000 in unreported expenses. Among its significant expenditures is a ,000 payment to GOTV OPS, Inc., a Brooklyn-based firm charged with mobilizing canvassers who distributed literature urging support for Adams.
The PAC has recently faced backlash for distributing materials that misleadingly suggested an endorsement from former Mayor David Dinkins, who passed away in 2020. Unlike traditional campaign efforts, PACs like Empower can invest unlimited funds to promote a candidate’s reelection, provided they do not coordinate directly with the candidate’s campaign strategy.
George’s engagement with the cryptocurrency community has generated concerns among watchdog organizations regarding the appearance of coordination between Empower and Adams’s campaign, especially given his public statements at recent industry events. A spokesperson for Mayor Adams, currently barred from receiving public matching funds due to compliance issues with the CFB, did not provide an immediate response to inquiries concerning these developments.
As the upcoming election approaches, the scrutiny surrounding Empower’s financial disclosures underscores the complex interplay between campaign financing and regulatory compliance in New York City’s political landscape.
