Crypto & AI Giants Pour $31M into Chicago Primaries: How Tech Money is Reshaping Democracy

The $31 Million Super PAC Blitz

National special-interest groups, now including deep-pocketed cryptocurrency and artificial intelligence interests, have spent tens of millions of dollars to influence four hotly contested Democratic congressional primaries in the Chicago area.

Through Thursday, super PACs whose donors are hard to track had reported spending more than $31.4 million, including more than $6.1 million for attack ads that are swamping voters ahead of Tuesday’s primaries.

The portions from the crypto, AI and pro-Israel groups total $26.9 million, a WBEZ review of federal campaign disclosures has found.

Unprecedented Spending Levels

This super PAC spending is far more than the last time the Chicago area had U.S. House primary races without an incumbent. In 2022, U.S. Rep. Jonathan Jackson’s campaign saw more than $1.1 million in super PAC support, while U.S. Rep. Delia Ramirez’s bid got a $1.5 million boost.

This election cycle, a handful of congressional candidates are seeing quadruple those amounts go toward their individual runs, with most of that super PAC money coming from a pro-Israel group and the trillion-dollar cryptocurrency and AI industries.

“There’s nothing wrong with interest groups getting involved in politics,” said Alisa Kaplan, executive director of Reform for Illinois, which tracks campaign money. “But when some groups can drown out everyone else because of their bottomless pockets… it distorts democracy.”

Cryptocurrency's Political Play

In the 7th Congressional District, retiring U.S. Rep. Danny Davis has endorsed state Rep. La Shawn Ford. But Ford has faced attack ads about a federal bank fraud case against him. The ads are part of a $2.5 million anti-Ford barrage by FairShake, a super PAC linked to cryptocurrency interests. The group, formed in 2023, tries to limit regulations on that financial sector.

Ford last year helped pass legislation to regulate digital asset exchanges — a measure opposed by some cryptocurrency groups. Ford told WBEZ he sent FairShake a cease-and-desist letter, which has not been answered.

“I would expect there to be some dirty politics. I didn’t expect there to be lies about my [legal] record,” Ford said. “They’ve been lying, saying I was convicted of bank fraud.”

FairShake has also spent more than $817,000 on negative ads in the 2nd District, which covers part of the South Side and some nearby suburbs. The ads attack state Sen. Robert Peters, a leading candidate to replace U.S. Rep. Robin Kelly.

“Crypto is not well-liked, particularly in the working-class Black community,” Peters said. “They have so much money they could flood the zone with misinformation to try to convince the voters that the [U.S. Sen.] Bernie Sanders-backed candidate is somehow beholden to corporations.”

AI's Political Influence

Unlike FairShake, a group aligned with AI interests has yet to go negative.

The group, Think Big, has pumped more than $1.1 million into digital ads and phone messages for former U.S. Rep. Melissa Bean’s bid for the 8th District. Her website describes AI as a “powerful tool,” but she did not respond to WBEZ about the contributions.

It also gave Peters’ opponent, Jesse Jackson Jr., a nearly $1.4 million boost for his comeback campaign.

Pro-Israel Groups Dominate Spending

The bulk of the super PAC expenditures in the four U.S. House primaries are linked to the American Israel Public Affairs Committee (AIPAC), a national lobbying organization that opposes strict human-rights conditions on U.S. military aid to Israel.

As of Thursday, AIPAC-tied committees had disclosed spending more than $20.5 million to promote the group’s favorite candidates or attack rivals.

That’s on top of millions of dollars from individuals — most outside Illinois — that AIPAC channeled to the congressional campaigns of Bean, state Sen. Laura Fine and Cook County Board member Donna Miller.

The largest beneficiary of AIPAC-linked spending is Chicago Treasurer Melissa Conyears-Ervin, running in the 7th District. One super PAC has spent nearly $5 million on her behalf.

Next is Fine, who is among 15 candidates competing in the 9th District. AIPAC-linked committees have not only spent nearly $4.4 million promoting Fine’s candidacy, they’ve bankrolled more than $2.6 million in attacks on her best-financed opponents, Evanston Mayor Daniel Biss and content creator Kat Abughazaleh.

A Fine statement to WBEZ calls a suggestion that outside spending would influence her policy positions “laughable.”