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      Trump Steers Campaign Donations Into PAC That Covers His Legal Fees

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      A previously unnoticed change in Donald Trump’s online fund-raising appeals allows him to divert a sizable chunk of his 2024 contributions to a group that has spent millions to cover his legal fees.Facing multiple intensifying investigations, former President Donald J. Trump has quietly begun diverting more of the money he is raising away from his 2024 presidential campaign and into a political action committee that he has used to pay his personal legal fees.The change, which went unannounced except in the fine print of his online disclosures, raises fresh questions about how Mr. Trump is paying for his mounting legal bills — which could run into millions of dollars — as he prepares for at least two criminal trials, and whether his PAC, Save America, is facing a financial crunch.When Mr. Trump kicked off his 2024 campaign in November, for every dollar raised online, 99 cents went to his campaign, and a penny went to Save America.But internet archival records show that sometime in February or March, he adjusted that split. Now his campaign’s share has been reduced to 90 percent of donations, and 10 percent goes to Save America.The effect of that change is potentially substantial: Based on fund-raising figures announced by his campaign, the fine-print maneuver may already have diverted at least $1.5 million to Save America.And the existence of the group has allowed Mr. Trump to have his small donors pay for his legal expenses, rather than paying for them himself.Steven Cheung, a spokesman for Mr. Trump, did not answer detailed questions about why the Trump operation has changed how the funds he is raising are being split. Save America technically owns the list of email addresses and phone numbers of his supporters — one of the former president’s most valuable assets — and the campaign is effectively paying the PAC for access to that list, he explained.“Because the campaign wants to ensure every dollar donated to President Trump is spent in the most cost-effective manner, a fair-market analysis was conducted to determine email list rentals would be more efficient by amending the fund-raising split between the two entities,” Mr. Cheung said in a written statement.Mr. Trump gave the keynote speech at the state Republican convention in Georgia this month. Onstage, he mentioned the indictments against him, which have become intertwined with his fund-raising efforts.Jon Cherry for The New York TimesThe different rules governing what political action committees and candidate campaign committees can pay for are both dizzying and somewhat in dispute. But generally, a PAC cannot spend money directly on the candidate’s campaign, and a campaign committee cannot directly pay for things that benefit the candidate personally.For more than a year, before Mr. Trump was a 2024 candidate, Save America has been paying for bills related to various investigations into the former president and his allies. In February 2022, the PAC announced that it had $122 million in its coffers.By the beginning of 2023, the PAC’s cash on hand was down to $18 million, filings show. The rest had been spent on staff salaries, on the costs of Mr. Trump’s political activities last year — including some spending on other candidates and groups — and in other ways. That included the $60 million that was transferred to MAGA Inc., a super PAC that is supporting Mr. Trump. And more than $16 million went to pay legal bills.Mr. Trump’s rivals are not similarly splitting their online proceeds with an affiliated PAC. The websites of former Vice President Mike Pence, former Ambassador Nikki Haley and Senator Tim Scott of South Carolina direct all the proceeds to their campaign committees. The same goes for Gov. Ron DeSantis of Florida, former Gov. Chris Christie of New Jersey and Vivek Ramaswamy.Mr. Trump at a campaign event in Manchester, N.H., in April. On his campaign website, supporters can buy an “I Stand With Trump” T-shirt and other merchandise alluding to his costly legal troubles.Sophie Park for The New York Times“I think in this particular situation, specifically because of the use of the leadership PAC to pay legal expenses and potentially other expenses that would be illegal personal use of campaign money, there’s an unusual incentive for the leadership PAC to take in more than it normally would,” said Adav Noti, senior vice president and legal director of Campaign Legal Center.In the run-up to Mr. Trump’s latest campaign, his legal bills exploded in size. Save America spent $1.9 million in what it identified as legal expenses in the first half of 2022. That figure ballooned to nearly $14.6 million in the second half of last year, federal records show.In late 2022, a Trump adviser said that about $20 million had been set aside by Save America PAC to cover legal expenses.Since then, Mr. Trump has been indicted twice, once by a Manhattan grand jury on charges stemming from a hush-money payment to a porn star, and once by a federal grand jury in Florida on charges including violations of the Espionage Act arising from Mr. Trump’s possession of classified material and government records long after he left office.A prominent attorney, Todd Blanche, left his white-collar law firm in April to join the former president’s legal team and is now representing him in both cases, and Mr. Trump recently met with about a half-dozen lawyers in Florida.Mr. Trump’s legal troubles are deeply intertwined with his political campaign and fund-raising efforts. His campaign store is selling an “I Stand With Trump” T-shirt showing the date of his indictment in Manhattan (“03.30.2023”) for $36; it recently added a second shirt with his Florida indictment date (“06.08.2023”) for $38. Half the featured items on the store’s landing page show a fake mug shot and the words “not guilty.”And Mr. Trump’s usual legal strategy — delay, delay, delay — could prove costly as overlapping teams of white-collar lawyers defend him in the federal case and the Manhattan criminal case, as well as in the investigation in Georgia, where Mr. Trump could face yet another indictment this summer for his role in trying to overturn the 2020 election. He is also facing an intensifying investigation by the special counsel Jack Smith into his efforts to cling to power after losing the election.It remains unclear whether Mr. Trump will try to use his campaign funds to pay for lawyers, should he run into difficulties with the political action committee — and whether such a move would run afoul of spending rules.“He can use the campaign to pay for legal bills that arise out of candidate or officeholder activity — and of course, some of the current legal matters fall into that category, and some do not, and some are in a gray area,” Mr. Noti said. “It really depends on what matter we’re talking about.”Jason Torchinsky, a Republican election lawyer, said he believed Mr. Trump was barred from using Save America donations to pay his personal legal expenses now that he’s a candidate, arguing that doing so would be “an excessive contribution” under Federal Election Commission precedent. And he said Mr. Trump could not use campaign money at all, because it would qualify as personal use.There have been signs that Mr. Trump’s campaign has been carefully monitoring its expenses.He has mainly attended events organized by other groups, as opposed to staging his own large-scale political rallies, which were the lifeblood of his two past runs for president and are one of his favorite parts of campaigning. Those rallies are expensive, costing at least $150,000 and usually more than $400,000.Mr. Trump has held only one full-scale rally in the seven months he has been running, with a second scheduled on July 1 in South Carolina, his first in an early-nominating state. (A rally in Iowa on May 13 was canceled after a tornado warning, though the weather cleared and Mr. DeSantis pointedly held an impromptu event nearby.)People familiar with the Trump campaign’s plans have said that the dearth of rallies was as much about husbanding resources as it was about getting Mr. Trump to engage with voters in a more traditional way. The people also suggested that more large-scale events might come in the fall, as the primary race heats up.But the fund-raising surges that Mr. Trump experienced after his first indictment at the end of March and again in June are expected to obscure a broader fund-raising slowdown. His campaign announced that he had raised $12 million in the first week after his first indictment and $7 million in the week after his second one. He will next disclose the state of his PAC and campaign’s finances in federal filings in July.Mr. Trump is unusually dependent on online fund-raising. He has held only one major campaign fund-raiser that was billed as such by his team: the event at Bedminster on the evening of his indictment. It raised $2 million. More

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      Ron DeSantis Finds a New Set of Laws to Ignore

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      There once was a Florida fund-raising committee called Friends of Ron DeSantis, which was overflowing with the $142 million it had raised. Mr. DeSantis used it personally for his campaign to be re-elected governor of Florida in 2022, but that was far more than he needed for that race, and when he was done he still had $86 million left over.But one day that committee disappeared. In fact, it was on May 15, just nine days before Mr. DeSantis announced that he was running for president. In paperwork filed that day, the committee changed its name to Empower Parents PAC and the governor’s name appears nowhere on the website’s home page. And just as that filing was made, the super PAC that is supporting Mr. DeSantis’s presidential ambitions said that it would be getting more than $80 million in leftover money transferred from Empower Parents.That transfer represents a new frontier in the long-running battle to undermine presidential campaign finance laws. And it is only one example of the many ways in which Mr. DeSantis, in particular, has tried make a mockery of those laws. If you want a preview of how Mr. DeSantis views the government’s limits on power and plutocracy — as feeble as they are already — there’s no better place to look than his campaign.There’s a reason that state political committees can’t just transfer their money into presidential super PACs. The Supreme Court’s 2010 Citizens United decision, which led to the creation of super PACs, said plainly that those committees had to be independent of a candidate’s campaign in order to receive unlimited contributions.But Friends of Ron DeSantis, as a state committee, was never independent of its namesake. He signed the paperwork to set it up in 2018, and listed himself as the person to solicit and accept all of its contributions. That was true until May 5 of this year, when he filed another official letter with the state saying that he was no longer soliciting or accepting contributions.The state committee had already become something of a slush fund for donors who wanted to help Mr. DeSantis’s long-term ambitions, which were never well disguised. Consider this: Mr. DeSantis was re-elected on Nov. 8, and is prevented by law from running for a third consecutive term. But the committee took in more than $15 million after the election. Why, for example, would Gregory P. Cook, whose essential-oils company, doTERRA, received a warning letter in 2020 and a lawsuit from the Federal Trade Commission for making false claims about preventing Covid, donate $1.3 million to Friends of Ron DeSantis on Feb. 22 of this year? Is it possible that he might want better treatment from a DeSantis presidency?The State of Florida certainly knew it was wrong to transfer money from a state campaign fund to a federal one. Since at least 2016, the biennial handbook issued by the Florida Division of Elections had expressly prohibited that move. “A Florida political committee must use its funds solely for Florida political activities,” the handbook said. But as NBC News reported, the DeSantis administration quietly deleted that wording, and this year’s version of the handbook conveniently says for the first time that such transfers are allowed. The new handbook bases its reasoning on the Citizens United decision — which of course had been in effect for 13 years, including when the handbook prohibited the move.The Campaign Legal Center, a nonprofit group that closely monitors these kinds of transactions, has filed a complaint against the DeSantis campaign with the Federal Election Commission, saying the transfer is illegal. But as Team DeSantis knows, the commission has deadlocked so often — with three Republicans countering three Democrats — that it has become toothless. In a similar but smaller case last year when a Republican member of the House tried to transfer state campaign funds, the commission refused to take action after the usual 3-to-3 vote.The transfer is only one of the ways Mr. DeSantis is pushing the limits of the campaign finance system. The super PAC supporting his presidential run, bearing the schoolboy name of “Never Back Down,” has made it clear that it has a dangerously broad view of what its role should be.Up to now, the main role of super PACs in elections has been to run TV ads in favor of a candidate or against an opponent, with an unconvincing disclaimer in small print at the end that the ad sponsor is not associated with any campaign or candidate. Super PACs can take in contributions of unlimited size, so they’ve been a great vehicle for wealthy donors, unions and corporations to demonstrate loyalty to a candidate without bumping up against the $3,300 individual donation limit per election for giving directly to a campaign.Those ads are bad enough, but Never Back Down is going much further by essentially taking over many of the main functions of the DeSantis campaign itself. As The Washington Post recently reported, the super PAC is opening office space in each of the early primary states, organizing a corps of door-knockers and volunteers, and launching a “Students for DeSantis” effort on university campuses, among other grass-roots organizing work. “This is going to be expansive and a completely different kind of super PAC,” Kristin Davison, the chief operating officer of Never Back Down, told The Post.The Times reported that Never Back Down is preparing to spend more than $100 million on the DeSantis field operation, hiring 2,600 workers by Labor Day to “knock on the door of every possible DeSantis voter at least four times in New Hampshire, Nevada and South Carolina — and five times in the kickoff Iowa caucuses.” The report quoted another leader of the super PAC as saying that no one had ever tried an effort like this before.One reason for that may be its dubious legality. No definition of a super PAC — technically defined as an “independent expenditure committee” (emphasis added) — can conceivably include that much detailed organizing work on behalf of a candidate, and it is impossible to imagine it can be done without silently coordinating with the “real” DeSantis campaign. By having wealthy donors, some of whom make multimillion-dollar contributions, pay for such fieldwork, the campaign can spend more money on things that only it can do, such as transporting the candidate and getting on 50 state ballots. That’s why donations given directly to a campaign, known as “hard money,” are much more valuable to a candidate, as well as being harder to raise because of the contribution limits.But as Mr. DeSantis has demonstrated repeatedly in Florida, he’ll just blow past the guardrails of the law if it suits his purposes. In his latest attempt to shatter the concept of independence, his super PAC has been put to work raising money directly for Mr. DeSantis’s campaign.Before the governor’s official announcement last month, Never Back Down raised $500,000 in hard money for a “draft committee,” all of which was to be transferred directly to the campaign once it became official, CBS News reported. For the draft committee, the super PAC limited contributions to the $3,300 limit, but by doing the work of fund-raising, and using its list of donors, the super PAC was in essence making a huge but unreported contribution to the campaign. One campaign finance expert described this effort by the super PAC as “unprecedented.”And the closeness between Never Back Down and the campaign continues to this moment. If you go to Never Back Down’s website, and click on the big red “donate” button at the top, it takes you to a page that collects donations for the campaign, not the super PAC.“This is effectively a huge in-kind gift to DeSantis’s campaign and will subsidize his fund-raising costs considerably, which is exactly the sort of role a super PAC should not be allowed to play,” said Saurav Ghosh, director of federal campaign finance reform at the Campaign Legal Center.On top of all that, the governor’s chief of staff, James Uthmeier, was used as one of the presidential campaign’s biggest fund-raisers, as NBC News reported Thursday. Breaching any ethical barrier between public service and politics, Mr. Uthmeier had administration officials around Florida pressure lobbyists to contribute to Mr. DeSantis’s campaign.Mr. DeSantis is hardly the only politician in the race who has demonstrated contempt for basic ethics and campaign finance laws. Donald Trump has funneled money from his leadership PAC to his super PAC, a different kind of abuse that has also drawn a complaint before the F.E.C. But Mr. DeSantis’s actions are pathbreaking in an unusually wanton and disdainful way. If that path should lead to the White House, it’s clear that big money will have a welcome place in American politics under his administration.The Times is committed to publishing a diversity of letters to the editor. We’d like to hear what you think about this or any of our articles. Here are some tips. And here’s our email: letters@nytimes.com.Follow The New York Times Opinion section on Facebook, Twitter (@NYTopinion) and Instagram. More

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      How DeSantis Allies Plan to Beat Trump in the 2024 Presidential Election

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      As the Florida governor prepares to enter the 2024 race, his allies are building an army of organizers to flood the states with the first nominating contests.A key political group supporting Ron DeSantis’s presidential run is preparing a $100 million voter-outreach push so big it plans to knock on the door of every possible DeSantis voter at least four times in New Hampshire, Nevada and South Carolina — and five times in the kickoff Iowa caucuses.The effort is part of an on-the-ground organizing operation that intends to hire more than 2,600 field organizers by Labor Day, an extraordinary number of people for even the best-funded campaigns.Top officials with the pro-DeSantis group, a super PAC called Never Back Down, provided their most detailed account yet of their battle plan to aid Mr. DeSantis, whom they believe they can sell as the only candidate to take on — and win — the cultural fights that are definitional for the Republican Party in 2024.The group said it expected to have an overall budget of at least $200 million, including more than $80 million to be transferred from an old DeSantis state political account, for the daunting task of vaulting the Florida governor past former President Donald J. Trump, who has established himself as the dominant early front-runner.Mr. DeSantis is set to enter the presidential race on Wednesday in a live audio conversation on Twitter, and the super PAC’s enormous cash reserves are expected to be among the few advantages that Mr. DeSantis has in the race.The group is already taking on many tasks often reserved for the campaign itself: securing endorsements in early primary states, sending mailers, organizing on campuses, running television ads, raising small donations for the campaign in an escrow account and working behind the scenes to build crowds for the governor’s events. Hiring is underway in 18 states and officials said plans were in the works to assemble various pro-DeSantis coalitions, such as for voters who are veterans or those focused on issues like abortion, guns or agriculture.“No one has ever contemplated the scale of this organization or operation, let alone done it,” said Chris Jankowski, the group’s chief executive. “This has just never even been dreamed up.”In Iowa, the group has opened a boot camp on the outskirts of Des Moines, giving the facility the code name “Fort Benning,” after the old Army training outpost, with 189 graduates of an eight-day training program the first wave of an organizing army to follow. Door knocking begins on Wednesday in New Hampshire.The endeavor echoes the “Camp Cruz” that Senator Ted Cruz’s 2016 presidential campaign set up near Des Moines.As Mr. DeSantis prepared for his first campaign events as a declared candidate, his allies for the first time detailed the show of force they are mustering to advance their strategy for prying away supporters of Mr. Trump.Mr. DeSantis at a round-table discussion last week in New Hampshire. Before his 2024 campaign is official, he has been making routine stops on the campaign trail.Sophie Park for The New York TimesAt the helm of the DeSantis super PAC is Jeff Roe, a veteran Republican strategist who was Mr. Cruz’s campaign manager in 2016. In an interview, Mr. Roe described an ambitious political apparatus whose 2,600 field organizers by the fall would be roughly double the peak of Senator Bernie Sanders’s entire 2020 primary campaign staff.Mr. Roe also previewed some of the contrasts that Never Back Down planned to draw with Mr. Trump. He argued that Mr. Trump had shied away from key fights that motivate the Republican base and on which Mr. DeSantis has led, including on L.G.B.T.Q. issues, schools and taking on corporate America.“How do you beat Trump?” Mr. Roe said, pointing to Mr. DeSantis’s assertiveness on those cultural issues. “Well, you beat Trump by beating Trump. And where Ron DeSantis has beaten Trump is by doing what Republican voters want him to do the most.”Mr. DeSantis has steadily lost ground so far in 2023 and is trailing Mr. Trump nationally in polls by an average of 30 percentage points. And as the governor’s standing has diminished, more candidates have jumped into the race, an ever-expanding field that could make the sheer math even harder for Mr. DeSantis to topple a former president with a significant base of loyalists.Steven Cheung, a spokesman for Mr. Trump, mocked the group as “Always Back Down,” calling it “a clown show of epic proportions.”Mr. DeSantis at a speech last week in Orlando. “Ultimately, politics is a team sport,” he told donors recently.Saul Martinez for The New York Times“If DeSantis runs his campaign the same way as his super PAC, he’ll be in for a rude awakening,” Mr. Cheung said.In framing the 2024 race, Mr. Roe acknowledged that Mr. Trump has been “the leader of a movement.” But, in Mr. Roe’s telling, it is Mr. DeSantis alone who “has the opportunity to be the leader of the party and the movement.”“That is a key difference,” he said. “I don’t believe people fundamentally understand that you can be a leader of a movement and not be the leader of your party. Ron DeSantis has the ability to be both. Trump does not.”That is a line that Mr. DeSantis himself articulated last week in a private call with donors that was organized by Never Back Down. He played up the money he has raised for state parties, including in New Hampshire.“Ultimately, politics is a team sport,” Mr. DeSantis told donors, adding an oblique shot at Mr. Trump. “You know, there’s some that kind of raise money just for themselves.”Republican primary voters, Mr. Roe said, see the battle against the progressive left as an existential fight. He argues that Mr. DeSantis, not Mr. Trump, has led on three touchstone issues in that fight: taking on corporate America, engaging in what is being taught in schools and confronting shifting norms and acceptance around sexual orientation and transgender medical care.The governor’s clash with Disney touches on all three: battling a big corporation over what began as a fight over classroom discussions about sexual orientation and gender identity in elementary schools. Mr. Trump sees the Disney battle as futile and has recently cheered on the company as it hit back against Mr. DeSantis.Mr. Roe added that the intensity of the threat that Republicans perceive to their way of life is what makes electability a more salient issue for the party in 2024, and what makes Mr. DeSantis’s ability to fight those fights and still win in Florida so appealing.“That is a manifest separation between the two candidates,” he said.Unlike a candidate’s campaign committee, which has to abide by strict caps for each donor, there are no limits on how much a super PAC is allowed to raise.And this one begins with unmatched financial firepower. Never Back Down is expected to begin with around $120 million — $40 million it says it already raised and $80 million from Mr. DeSantis’s old state political committee — a sum that is equal to what Jeb Bush’s super PAC spent in total in 2016.But there are several legal impediments to this financial freedom. The people who run super PACs are prohibited from discussing strategy with the candidate or the campaign staff. Of course, if Mr. DeSantis disagrees with any super PAC decisions, he can always say so publicly and urge them to change course.As a result, the biggest super PACs — entities that have existed for just the last roughly 12 years — have often essentially become independent vehicles to buy expensive television advertising. That model, however, is extremely inefficient. When the election nears, the airwaves are cluttered and candidates are guaranteed, by law, far lower rates than super PACs. It is one reason the pro-DeSantis group plans to spend so heavily on its field program, officials said, citing studies that show personal voter contact has far greater return on investment.Hiring is underway in 18 states and officials said plans were in the works to assemble various pro-DeSantis coalitions, such as for voters who are veterans or those focused on issues like abortion, guns or agriculture.Haiyun Jiang/The New York Times“That’s not to say that we won’t do TV, it’s that it’s not all that we’ll do,” said Kristin Davison, the chief operating officer of Never Back Down. “We understand that in the first four states that peer-to-peer, neighbor-to-neighbor conversation and conversion is going to be extremely important.”Strategists with Never Back Down have been consulting lawyers and studying precedent to see exactly how far the group can stretch the legal bounds of what tasks it can perform without tripping any legal wires. One overlooked twist in election law is that super PAC advisers can move to the campaign, so it is possible entire departments at Never Back Down could eventually join the DeSantis campaign.The hand-in-glove efforts were on display during Mr. DeSantis’s recent trip to Iowa. After Mr. Trump canceled a rally near Des Moines, the governor decided he wanted to swoop in for a last-minute event in the area. But it wasn’t the governor’s staff that scrambled to bring people to the location but employees of the super PAC, who, working with Mr. DeSantis’s team, sent a flurry of texts and calls to assemble a crowd at Jethro’s BBQ that evening.“On like two hours’ notice, at some local pizza joint or barbecue joint, we got like 200 people to show up,” Mr. DeSantis raved to donors on the call, which The New York Times listened to.Despite Mr. DeSantis’s professed aversion to political consultants, particularly those who work around Washington, and his history of asking questions about what people who work for him are making, his team has anointed one of the Republican Party’s most famous consultants to oversee Never Back Down.Mr. Roe has emerged as an unusual lightning rod, among DeSantis allies and rivals alike. His aggressive approach to both campaigning and business development was the subject of a recent Washington Post article that detailed his firm’s efforts to vacuum up ever more revenue, including from its political clients.Mr. Trump himself obsesses over Mr. Roe, who is the only political consultant that he regularly talks about, according to people who have discussed the matter with the former president. Advisers so regularly feed him stories about the money spent on Mr. Roe’s losing campaigns that Mr. Trump has coined a nickname for him: “the kiss of death.”Never Back Down has already spent more than $10 million on pro-DeSantis television ads this spring. The early spending has been the subject of second-guessing from some DeSantis allies as it coincided with a drop in the polls. But Never Back Down advisers defended the ads as not just propping up Mr. DeSantis before he enters the race but as part of an enormous experiment — including mail, text messaging and control groups — to study what means of communicating works against Mr. Trump.Officials said voters were surveyed before and after in tens of thousands of interviews to determine the impact. More

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      Super PAC Backing DeSantis Says It Has Raised $30 Million

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      Fund-raising is predicted to be a strength for Ron DeSantis, who is expected to announce his bid for the Republican presidential nomination in the coming months.The super PAC that is likely to serve as the main vehicle supporting Gov. Ron DeSantis of Florida in a Republican presidential primary has raised $30 million since March 9, a senior official with the group said on Sunday night.The sums raised for the super PAC, named Never Back Down, show the financial might that would back a DeSantis campaign, should he enter the presidential race, as expected, after the Florida legislative session ends in early May.The fund-raising was described by an official with the group, who spoke on the condition of anonymity to discuss internal operations. The official did not disclose any names of donors.None of the money raised was transferred from another committee, the official said. Mr. DeSantis’s state political committee had more than $82 million as of last month, which could eventually be transferred to another entity supporting him.Because Never Back Down is a federal super PAC, it can raise unlimited sums from donors. Over half the money was donated from people outside Florida, the official said.The group is raising funds online, sending money into a “Draft Ron” entity that could be transferred to an eventual presidential race.Fund-raising is expected to be a strength for Mr. DeSantis in a presidential contest, as a number of major Republican donors have expressed interest in him as a formidable challenger to the front-runner, former President Donald J. Trump.Mr. Trump, who was never the favorite of most major donors but who had most of their support while he was president, has not mustered the same type of backing for his 2024 presidential campaign. (He is scheduled to be arraigned on Tuesday in Manhattan in a case related to hush-money payments to a porn actress.)By contrast, Mr. DeSantis is expected to have tens of millions of dollars in commitments of support from donors, according to one Republican fund-raiser familiar with his operation. Money, this Republican said, will not be a problem for Mr. DeSantis.Never Back Down is being led by Kenneth T. Cuccinelli II, who served as acting deputy secretary of homeland security under Mr. Trump. Mr. Cuccinelli has been traveling the country to drum up support for a DeSantis candidacy.The super PAC recently hired Jeff Roe, a Republican strategist who has played key roles in advising Senator Ted Cruz of Texas and Gov. Glenn Youngkin of Virginia, among others. And the team has hired several other national campaign veterans, including some who worked for Mr. Trump.For the 2024 Republican nomination, Mr. Trump has consistently led in national public polling of primary voters, and Mr. DeSantis has been his closest competitor in a still-growing field. On Sunday, former Gov. Asa Hutchinson of Arkansas announced his campaign, joining a fellow former Republican governor, Nikki Haley of South Carolina, looking to challenge Mr. Trump.Mr. Trump also has a super PAC, Make America Great Again PAC, which recently began running ads attacking Mr. DeSantis. The group has not released fund-raising numbers. More

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      Pro-DeSantis Super PAC Hires Another Former Trump Aide

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      Matt Wolking, who was part of the 2020 Trump campaign, will coordinate strategic communications for Never Back Down, a super PAC backing Gov. Ron DeSantis of Florida.A top communications aide for former President Donald J. Trump’s 2020 presidential campaign has become the latest former Trump official to join a super PAC supporting Gov. Ron DeSantis of Florida amid escalating tensions between the two Republicans.Matt Wolking, the deputy communications director for Mr. Trump’s previous campaign, has joined the super PAC, Never Back Down, as strategic communications director.In 2020, Mr. Wolking oversaw the rapid response and war room teams for the Trump campaign and in 2021, he was the campaign communications director for Gov. Glenn Youngkin of Virginia.Most recently, he was vice president of communications at Axiom Strategies, the company run by Jeff Roe, a political consultant who joined the pro-DeSantis super PAC this month. Mr. Roe oversaw the 2016 presidential bid of Senator Ted Cruz of Texas, who was the runner-up in the Republican presidential nomination that year.Mr. Trump remains the favorite to win his third Republican presidential nomination, according to polls. Mr. DeSantis, in those same surveys, is Mr. Trump’s chief potential rival for the nomination.The two men have increasingly jabbed at each other as they aim to win over Republican voters.Last week, Mr. DeSantis jabbed at Mr. Trump in an interview with Piers Morgan that aired on Fox News in which he raised questions about the former president’s character, described Mr. Trump’s attacks on him as “background noise” and drew distinctions between their leadership styles.“No daily drama, focus on the big picture and put points on the board,” Mr. DeSantis said of his own approach.Mr. Trump responded on Saturday in Waco, Texas, at the first major rally of his 2024 presidential campaign, telling the crowd that Mr. DeSantis had begged him “with tears in his eyes” for an endorsement during the 2018 governor’s race in Florida.“I did rallies for Ron, massive rallies, and they were very successful,” Mr. Trump said, adding: “Two years later, the fake news is up there saying, ‘Will you run?’ And he says, ‘I have no comment.’ I say, ‘That’s not supposed to happen.’”Mr. Trump’s mocking of Mr. DeSantis did not appear to go over well with the crowd, which did not respond with the kind of energetic applause that greeted some of the former president’s other remarks. Similarly, a pro-Trump audience in Iowa this month reacted with some groans to Mr. Trump’s attacks on Mr. DeSantis.“Donald Trump was the president we needed eight years ago, but to make America great again, our movement needs a disciplined leader who wins instead of loses, never backs down, fights smart, and puts the mission before himself,” Mr. Wolking said in a statement. “On each count, Governor Ron DeSantis is the strongest choice: He’s bold, effective, and knows how to finish the job, so with him as president we will finally be able to win so much that we’ll be tired of all the winning.”Mr. Wolking’s hiring follows an announcement last week that the super PAC was hiring Erin Perrine, who had been director of press communications for the 2020 Trump campaign, as communications director.The PAC was founded by Kenneth T. Cuccinelli II, who had served in the Trump administration as deputy secretary of the Department of Homeland Security, to urge Mr. DeSantis to announce a White House bid. Mr. DeSantis hasn’t formally announced a campaign, a decision he is expected to finalize in the coming months.“Matt is universally respected, at the top of his game, and will play a decisive role in Never Back Down achieving our strategic objectives and parlaying the desperate attacks poorly attempted by the former president and his shrinking number of allies,” said Chris Jankowski, the chief executive of the pro-DeSantis PAC. More

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      How the Worst Fears for Democracy Were Averted in 2022

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      A precariously narrow but consequential slice of the electorate broke with its own voting history to reject openly extremist Republican candidates — at least partly out of concern for the health of the political system.Not long ago, Joe Mohler would have seemed an unlikely person to help bury the political legacy of Donald J. Trump.Mr. Mohler, a 24-year-old Republican committeeman and law student in Lancaster Township, Pa., voted for Mr. Trump in 2016. He voted for him again in 2020 — but this time with some misgivings. And when Mr. Trump began spouting lies and conspiracy theories about his 2020 loss, Mr. Mohler, who grew up in a solidly conservative area of southeastern Pennsylvania, was troubled to hear many people he knew repeat them.Last January, after county Republican leaders aligned with a group known for spreading misinformation about the 2020 election and Covid-19 vaccines, Mr. Mohler spoke out against them — a move that he said cost him his post as chairman of the township G.O.P. committee.“I just realized how much of a sham the whole movement was,” he said. “The moment the veil is pulled from your face, you realize how ugly the face is that you are looking at.”Mr. Mohler was part of a precariously narrow but consequential slice of the electorate that went against its own voting history this year in order to reject Republican candidates who sought control over elections, at least in part out of concern for the health of the political system and the future of democracy.After deciding that preserving the integrity of elections was his single most important issue in 2022, he voted last month for the party’s nominee for Senate, Mehmet Oz, who hedged carefully on the question of who won the 2020 election but eventually said he would have voted to certify Joseph R. Biden Jr.’s victory had he been in office. But in the governor’s race, Mr. Mohler decided he could not vote for Doug Mastriano, the Republican candidate, who as a state senator was central to efforts to overturn Pennsylvania’s 2020 election results. Mr. Mastriano had pledged to decertify voting machines in counties where he suspected the results were fraudulent and to appoint as secretary of the commonwealth, the office overseeing elections in Pennsylvania, someone who shared his views.“It was just so reprehensible,” Mr. Mohler said. “I didn’t want anybody like that in the governor’s office.”Doug Mastriano, a leader in the movement to investigate and overturn the 2020 election, was defeated in the Pennsylvania governor’s race.Mark Makela for The New York TimesThe decisions of voters like Mr. Mohler, discernible in surveys and voiced in interviews, did not necessarily lay to rest concerns about the ability of the election system to withstand the new pressures unleashed upon it by Mr. Trump. But they did suggest a possible ceiling on the appeal of extreme partisanship — one that prevented, in this cycle, the worst fears for the health of democracy from being realized. Mr. Mastriano lost by nearly 15 percentage points to the Democratic candidate, Josh Shapiro — part of a midterm election that saw voters reject every election denier running to oversee elections in a battleground state. In Arizona, Michigan and Nevada, Republican primary voters nominated candidates campaigning on Mr. Trump’s election lies for secretary of state, the office that in 40 states oversees the election system. In all three, those candidates lost. The rout eased the immediate concern that strident partisans who embraced conspiracy theories about hacked voting machines, foreign meddling and smuggled ballots might soon be empowered to wreak havoc on election systems.The election results suggest that a focus on Mr. Trump’s election lies did not merely galvanize Democrats but also alienated Republicans and independents. Final turnout figures show registered Republicans cast more ballots than registered Democrats in Arizona and Nevada, but election-denying candidates nevertheless lost important races in each of those states.Republican candidates in statewide contests who embraced Mr. Trump’s election lies also significantly underperformed compared with Republicans who did not. This was true even in districts that voted overwhelmingly for Mr. Trump in 2020, suggesting that the defection of ticket-splitters like Mr. Mohler likely played a role.In a survey of voters in five battleground states conducted by the research firm Citizen Data for the advocacy group Protect Democracy, a third who cast ballots for a mix of Democrats and Republicans in November cited a concern that G.O.P. candidates held views or promoted policies “that are dangerous to democracy.” The Aftermath of the 2022 Midterm ElectionsCard 1 of 6A moment of reflection. More

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      What Really Saved the Democrats This Year?

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      In the Democratic Party, despite its better-than-expected showing in the 2022 midterm elections, internecine combat has been playing out in disputes over the party’s nominees and the policies they propose. At the nuts-and-bolts level of candidate selection, the debate has become intensely emotional and increasingly hostile.Strategists in the progressive wing of the party call centrists “corporate sellouts.” Centrists, in turn, accuse progressives of alienating voters by promoting an extremist cultural and law enforcement agenda.I asked Liam Kerr, co-founder of the centrist Welcome PAC, for his views on state of the intraparty debate. He emailed back:Far-left political science deniers refuse to accept the fact that moderate candidates still outperform those at the extremes. While there may be fewer swing voters now, the closeness of elections maximizes their importance. All the data points to moderate outperformance — from political science research to election results to common sense.Take the Dec. 16 analysis of the 2022 election by another centrist group, Third Way, “Comparing the Performance of Mainstream v. Far-Left Democrats in the House”: “Far-left groups like Sanders-style Our Revolution and AOC’s Justice Democrats constantly argue that the more left the candidate, the better chance of winning, saying their candidates will energize base voters and deliver victory,” Lanae Erickson, Lucas Holtz and Maya Jones of Third Way wrote.In an effort to test the claim of progressive groups, they note, “We conducted case studies analyzing districts with comparable partisan leans and demographically similar makeups to discern how Democratic congressional candidates endorsed by the center-left New Democrat Action Fund (NewDems) performed in the 2022 midterm elections versus those endorsed by far-left organizations.”Their results:In total, NewDems flipped seven seats from red to blue, picked up two critical wins in new seats, and helped elect 18 new members to Congress in the 2022 midterm elections. The NewDems Fund has now flipped 42 seats from red to blue since 2018, while Our Revolution and Justice Democrats have not managed to flip a single Republican-held seat over the last three cycles.I asked Joseph Geevarghese, the executive director of Our Revolution, if the organization had flipped any House seats from red to blue. He replied by email:This was not the goal of Our Revolution. Our Revolution’s goal in the 2022 elections was to push the Democratic Caucus in a progressive direction, and we succeeded with nine new members joining the ranks of the Congressional Progressive Caucus.In part because of Our Revolution’s support, he continued:The Congressional Progressive Caucus is growing by nine newly elected members, all of whom were endorsed by Our Revolution. That includes: Summer Lee, Greg Casar, Delia Ramirez, Maxwell Frost, Becca Balint, Andrea Salinas, Jasmine Crockett, Jonathan Jackson, and Val Hoyle. Our Revolution’s success didn’t include just those running for Congress. Our Revolution’s success expanded to local races including St. Louis Board of Alderman President-elect Megan Green, whose victory creates a blue island in a state that is a sea of red.Waleed Shahid, communications director for Justice Democrats, emailed in response to a similar inquiry of mine that his group does not focus on shifting seats from red to blue: “We haven’t run really races in those areas. We’ve been focused on blue seats where the incumbent is corporate-backed and out of touch with their district.”Instead, Shahid wrote: “After the 2022 election cycle, the Congressional Progressive Caucus stated the incoming membership is the largest in its history at 103 members. The top three leaders are also all Justice Democrats: Rep. Pramila Jayapal as chair; Rep. Ilhan Omar as deputy chair; and Rep.-elect Greg Casar as whip.”In addition, Shahid argued, “Progressives have a lot to do with Democrats’ ambitious agenda under President Biden. Our work at Justice Democrats engaging in competitive primaries, win or lose, has been a big part of it — moving Democratic incumbents on key issues.”If, Shahid contended, “you think of politicians as balloons tied to the rock of public opinion, then progressives have substantially moved the rock,” adding thatmoderates have shifted in turn. John Fetterman and Raphael Warnock are not the same kind of Third Way moderates that might have run in purple states in the pre-Trump era. They embrace reproductive rights, bold climate action, a $15 minimum wage, eliminating the filibuster, student debt cancellation, and immigrant rights — things many moderates ran away from in the Obama era. The center of the party has shifted closer to the base and away from the consensus among Washington and Wall Street donors.While this debate may appear arcane, the dispute involves two different visions of the Democratic Party, one of a governing party guided by the principles of consensus and restraint, the other of a party that represents insurgent, marginalized constituencies and consistently challenges the establishment.Adam Green, co-founder of the Progressive Change Campaign Committee, was adamant in his criticism of Third Way, declaring in an email: “Every cycle, Third Way cooks the books with a false accounting of how races were run and won.”Green continued:The truth is: In swing seat after swing seat, Democrats won by running on economic populist positions that have long been supported by progressives and opposed by corporate Democrats — such as protecting and expanding Social Security benefits and fighting the pharmaceutical companies and Wall Street banks that fund Third Way. If there was one thing that caused Democrats to unnecessarily lose races this year, it was corporate Democrats like Joe Manchin, Kyrsten Sinema and Josh Gottheimer blocking the president’s economic agenda for a year so that the impact of things like lower-price prescriptions were not felt by voters in time for the election.Green objected to Third Way’s comparison of the results of the New Democrat Coalition PAC, which has official standing with the House, with the result of such outside groups as Justice Democrats and Our Revolution.If, however, the endorsees of the New Democrat Coalition are compared with the endorsees of the Congressional Progressive Caucus, the New Democrat Coalition PAC candidates flipped a total of 42 seats from red to blue, 32 in 2018, three in 2020 and seven in 2022, while the candidates endorsed by the Congressional Progressive Caucus flipped a total of eight over the three cycles, all in 2018, according to officials of both groups. The Progressive Caucus and the New Democrat Coalition have roughly equal numbers of members.Joe Dinkin, of the Working Families Party, dismissed the Third Way study as the “conclusions of the corporate flank of the Democratic Party” that have been subject to “very little scrutiny.”In the newly elected Congress, Dinkin wrote:This will be the most progressive Democratic caucus in memory, if not ever. 16 of the new 34 Democratic members of Congress were backed by the Congressional Progressive Caucus PAC. The Congressional Progressive Caucus will have 103 members, or roughly 48 percent of the entirety of the Democratic caucus — a roughly 50 percent increase over the last decade.Dinkin continued:Centrist incumbents saw some significant losses. Democratic Congressional Campaign Committee chair Sean Patrick Maloney, a leading moderate, decided after redistricting to run in the bluer NY-17 over his former NY-18, a tougher district which included most of his former constituents, even though it meant leaving the incumbent Democrat in NY-17 without a district. Maloney lost that bluer seat. The Democrat who ran in NY-18, the redder seat SPM abandoned, was Pat Ryan — he won, and won with crucial support from the Working Families Party. Several other incumbent moderates lost their seats too, like former Republican and Blue Dog Tom O’Halleran.The intraparty debate boils down to a choice between two goals.If the objective is strengthening the left in the Democratic House Caucus, the way to achieve that goal is to nominate the most progressive candidate running in the primary. On that score, the size of the Congressional Progressive Caucus has grown, since its founding in 1991, to 103 members (as noted above). Overall, the composition of the Democratic electorate continues to shift to the left as have the votes of House Democrats, albeit slightly.If winning more seats is the top priority, the preponderance of evidence suggests that nominating moderate, centrist candidates in districts where Republicans have a chance of winning is the more effective strategy, with the caveat that a contemporary moderate is substantially more liberal than the moderate of two decades ago.Most — though by no means all — scholarly work supports the view that moderate candidates in competitive districts are more likely to win.Zachary F. Peskowitz, a political scientist at Emory, argued in an email:Candidates who are ideologically aligned with their constituencies will win more votes, on average, than relatively extreme candidates. If your goal is to win majorities in the House and the Senate, nominating moderate candidates in the most competitive districts and states — where the majority will be determined — is the best way to do it. If, instead, your goal is to push elite discourse in a liberal direction and are less concerned about immediately winning a governing majority, then nominating extremist candidates is a reasonable approach.Contrary to the argument that a more progressive candidate can mobilize base voters, Peskowitz argued that “nominating extremist candidates might increase turnout, but not enough to compensate for ceding moderates’ votes to your opponent. Moreover, there is a risk that an extremist will also mobilize the opposition to turn out to vote.”In sum, Peskowitz wrote:Progressive-aligned candidates who won the primaries in competitive districts or states did not fare well in the general election. Mandela Barnes lost the Wisconsin Senate contest to incumbent Ron Johnson and ran behind Wisconsin’s other statewide Democratic nominees. Josh Riley lost New York’s 19th Congressional District and Jamie McLeod-Skinner, the only progressive Democrat who successfully dethroned a Democratic incumbent in this cycle’s primaries, lost Oregon’s 5th Congressional District. Summer Lee in Pennsylvania’s 12th Congressional District was the one example of a progressive endorsed non-incumbent who won a seat that wasn’t a Democratic lock. Moderate Democratic candidates, such as Abigail Spanberger and Haley Stevens, performed strongly, holding on to seats in challenging districts.Andrew B. Hall, a political scientist at Stanford, has examined the debate over moderate-versus-progressive candidates extensively, including in a 2018 paper with Daniel M. Thompson, a political scientist at U.C.L.A., “Who Punishes Extremist Nominees? Candidate Ideology and Turning Out the Base in U.S. Elections.”Hall and Thompson write: “We find that extremist nominees — as measured by the mix of campaign contributions they receive — suffer electorally, largely because they decrease their party’s share of turnout in the general election, skewing the electorate towards their opponent’s party.”“Turnout,” they add, “appears to be the dominant force in determining election outcomes, but it advantages ideologically moderate candidates because extremists appear to activate the opposing party’s base more than their own.”Hall and Thompson compared general election results from 2006 to 2014 in House races that involved close primary contests between a moderate and a more extreme candidate. They found that instead of lifting turnout, there were “strong, negative effects of extremist nominees on their party’s share of turnout in the general election.” Extremist nominees, they observed, “depress their party’s share of turnout in the general election, on average.”Hall and Thompson conclude that it is moderates who have a turnout advantage in general elections. They make two points.First, “We have found consistent evidence that extremist nominees do poorly in general elections in large part because they skew turnout in the general election away from their own party and in favor of the opposing party.”And second, “Much of moderate candidates’ success may actually be due to the turnout of partisan voters, rather than to swing voters who switch sides. In fact, our regression discontinuity estimates are consistent with the possibility that the bulk of the vote-share penalty to extremist nominees is the result of changes in partisan turnout.”An earlier study, from 2010, “Securing the Base: Electoral Competition Under Variable Turnout,” by Michael Peress, a political scientist at Stony Brook University, produced similar results: “My results indicate that the candidates can best compete by adopting centrist positions. While a candidate can increase turnout among his supporters by moving away from the center, many moderate voters will defect to his opponent.”Matt Grossmann, a political scientist at Michigan State University, agreed that “moderate candidates perform better in general elections,” but, he added, “that advantage is declining as baseline partisanship drives most results regardless of candidates. Because we have national partisan parity, small candidate advantages can still be important.”The moderation factor, Grossman wrote by email, “was more pronounced on the Republican side because Republicans ran more extreme candidates and those candidates had less experience. There continues to be no evidence in either party that extreme candidates mobilize their side more than they mobilize the other side or turn off swing voters.”The Democratic strategist Ruy Teixeira, a senior fellow at the American Enterprise Institute and a longtime critic of the Democrats’ progressive wing, contends in a recent essay, “Ten Reasons Why Democrats Should Become More Moderate,” that adoption of an extreme progressive stance is not only “dead wrong,” but also that “Democrats need to fully and finally reject it if they hope to break the current electoral stalemate in their favor.”In the 2022 election, Teixeira writes,the reason why Democrats did relatively well was support from independents and Republican leaning or supporting crossover voters — not base voters mobilized by progressivism. These independents and crossover voters were motivated to support Democrats where they did because many Democrats in key races were perceived as being more moderate than their extremist Republican opponents.According to Teixeira:As the Democratic Party has moved to the left over the last four years, they have actually done worse among their base voters. They’ve lost a good chunk of their support among nonwhite voters, especially Hispanics, and among young voters. Since 2018, Democratic support is down 18 margin points among young (18-29 year old) voters, 20 points among nonwhites and 23 points among nonwhite working class (noncollege) voters. These voters are overwhelmingly moderate to conservative in orientation and they’re just not buying what the Democrats are selling.Teixeira’s final point:Democrats shouldn’t be afraid to embrace patriotism and dissociate themselves from those who insist America is a benighted, racist nation and always has been. Large majorities of Americans, while they have no objection to looking at both the bad and good of American history, reject such a one-sided, negative characterization. That includes many voters whose support Democrats desperately need but who are now drifting away from them.A postelection analysis conducted by officials of Impact Research, the firm that polls for President Biden, provides further support for a moderate strategy by emphasizing the crucial importance in the 2022 contest of winning support from independent voters.In their Dec. 7 study, “How Democrats Prevented a Red Wave,” John Anzalone, founder of Impact, and Matt Hogan, a partner, wrote:That Democrats’ win over independents was critical since Republicans appear to have bested them in turnout based on both finalized geographic data and exit polls. The latter found that Republicans had a 3- to 4-point advantage in party ID and that each party won about 95 percent of their own partisans. It was therefore Democrats’ performance with independents, not turnout, that helped prevent a red wave.A key factor in Democrats’ ability to win over independents, according to Anzalone and Hogan,was that these voters wanted more bipartisanship and felt Democratic candidates were more likely to deliver it. By an 11-point margin (53 percent to 42 percent), voters preferred a candidate who would “work in a bipartisan manner and compromise” over one who would “stay true to their beliefs.” Among independents, the preference for bipartisanship more than doubled to 24 points. Democrats benefited from this desire by winning the voters who preferred a bipartisan approach by a 30-point margin.As a practical matter, the debate between proponents of moderation and proponents of progressivism may be less of a dilemma for the Democratic Party than an ongoing process in which the party, its voters and its elected officials move leftward, often turbulently. At the same time, the Democratic Party has a storied history of cannibalizing its own — and Republicans are catching up quickly. It is getting harder to see a peaceable and productive resolution between the two parties or inside them.The Times is committed to publishing a diversity of letters to the editor. We’d like to hear what you think about this or any of our articles. Here are some tips. And here’s our email: letters@nytimes.com.Follow The New York Times Opinion section on Facebook, Twitter (@NYTopinion) and Instagram. More

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      Sam Bankman-Fried and Allies’ Political Donations Under Scrutiny by US

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      Federal prosecutors appear to be focusing on possible wrongdoing by cryptocurrency executives, rather than by Democratic or Republican politicians. But the inquiries widen an explosive campaign finance scandal.WASHINGTON — Federal prosecutors in Manhattan are seeking information from Democrats and Republicans about donations from the disgraced cryptocurrency entrepreneur Sam Bankman-Fried and two former executives at the companies he co-founded.In the days after Mr. Bankman-Fried was arrested on Monday and charged with violations including a major campaign finance scheme, the prosecutors reached out to representatives for campaigns and committees that had received millions of dollars from Mr. Bankman-Fried, his colleagues and their companies.A law firm representing some of the most important Democratic political organizations — including the party’s official campaign arms, its biggest super PACs and the campaigns of high-profile politicians such as Representative Hakeem Jeffries — received an email from a prosecutor in the United States attorney’s office for the Southern District of New York. The email sought information about donations from Mr. Bankman-Fried, his colleagues and companies, according to people familiar with the request, who insisted on anonymity to discuss an ongoing law enforcement matter.The prosecutors have reached out to representatives of other Democratic campaigns that received money linked to the cryptocurrency exchange FTX, which Mr. Bankman-Fried co-founded, according to two other people familiar with the matter. Prosecutors are also investigating donations to Republican campaigns and committees by another FTX executive who was a top financier on the right, according to a person familiar with the situation.So far, Mr. Bankman-Fried is the only executive to face charges. Since emerging as a leading political megadonor in the months before the 2020 election, he has donated nearly $45 million, primarily to Democratic campaigns and committees that are now scrambling to distance themselves.There has not been any suggestion that political campaigns and groups engaged in wrongdoing related to the donations they received. The Justice Department’s inquiries appear to be an effort to gather evidence against Mr. Bankman-Fried and other former FTX executives, rather than against their political beneficiaries.But the prosecutors’ requests widen what has quickly become one of the biggest campaign finance scandals in years, as both Democrats and Republicans grapple with questions about their eagerness to tap into a stream of cash from a murky and largely unregulated industry that emerged suddenly as a powerful political player.The fallout has been swift and is only growing, as lawmakers, operatives for political action committees and their lawyers try to minimize the damage.Some politicians — including Mr. Jeffries, the incoming Democratic leader in the House, and Representative-elect Aaron Bean, a Republican from Florida — either returned donations linked to FTX or gave the money to charity after the company became embroiled in scandal. Other groups say they are setting the cash aside for possible restitution to victims of the alleged scheme.Prosecutors said FTX was a “house of cards” through which Mr. Bankman-Fried and others diverted customer money to buy expensive real estate in the Bahamas, invest in other cryptocurrency firms, provide themselves with personal loans and make political contributions of tens of millions of dollars intended to influence policy decisions on cryptocurrency and other issues.What to Know About the Collapse of FTXCard 1 of 5What is FTX? More