Iowa Democrats take on $200,000 debt after repaying FTX-linked campaign donation

DES MOINES — The Iowa Democratic Party is carrying nearly $200,000 in debt after repaying money tied to disgraced cryptocurrency executives, according to the party’s latest state financial disclosure report.

The filing shows the party took out two loans totaling $200,000 in October, made a $2,500 payment — leaving $197,500 in outstanding debt --- and issued a $200,000 check to the FTX Recovery Trust that same month. The repayment traces back to a $250,000 campaign contribution made in June 2022 by Nishad Singh, a former executive of the now-bankrupt cryptocurrency exchange FTX.

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Singh pleaded guilty in 2023 to conspiracy to commit securities fraud, conspiracy to commit money laundering and conspiracy to violate campaign finance laws as part of the federal prosecution of Sam Bankman-Fried, whose companies collapsed amid what prosecutors described as widespread fraud. Federal authorities have since sought the return of political donations made by FTX executives so the money can be used to compensate victims.

FTX executives also donated to the campaigns of Iowa Republican U.S. Sens. Joni Ernst and Chuck Grassley and U.S. Reps. Ashley Hinson and Mariannette Miller-Meeks, according to federal records.

Federal prosecutors have alleged that Bankman-Fried, the former billionaire founder of the collapsed cryptocurrency exchange, used more than $100 million in stolen customer funds to bankroll political campaign contributions ahead of the 2022 midterm elections.

According court filings and Federal Election Commission records, Bankman-Fried directed Singh and fellow FTX executive Ryan Salame to make donations to both Democratic and Republican candidates and political groups in order to evade contribution limits and conceal the true source of the money. Prosecutors said Bankman-Fried used that political influence to lobby Congress and regulators on legislation and rules that could benefit FTX.

Singh pleaded guilty in February 2023 to fraud and campaign finance violations. He donated $9.7 million to Democratic candidates and causes, according to Reuters. Salame donated more than $24 million to Republican candidates and causes during the 2022 cycle, according to federal records.

Federal prosecutors: Donations tied to stolen customer funds

After FTX entered bankruptcy and federal charges were filed, political campaigns, parties and organizations across the country began returning or disgorging FTX-linked donations, often after contact from federal prosecutors or bankruptcy representatives seeking to recover money for victims.

Some recipients returned funds voluntarily, or donated them to charity. Others did so after negotiations with the Department of Justice or the FTX bankruptcy estate.

The Iowa Democratic Party’s recent financial disclosure reflects one such repayment, part of a broader national effort to claw back political donations connected to the FTX fraud.

“In June 2022, the Senate Majority Fund received a contribution for $250,000. The Iowa Democratic Party first learned that federal prosecutors were seeking records or repayment related to FTX-linked donations on Dec. 12, 2022,” Iowa Democratic Party spokesperson Paige Godden wrote in an email in response to questions submitted by The Gazette.

The Senate Majority Fund is the campaign arm of Iowa Senate Democrats and one of the banking accounts nestled under the umbrella of the Iowa Democratic Party.

“Since then, the IDP, at the direction of Senate leadership, reached a $200,000 settlement with FTX creditors,” Godden said. “IDP has no future FTX-related liabilities. (Senate Democratic) Leader (Janice) Weiner has done a remarkable job throughout this process — including delivering three special election wins — and we have full confidence her team will deliver more wins in 2026.”

The Iowa Democratic Party also received a $9,756 contribution from Bankman-Fried via a wire transfer from the Democratic Grassroots Victory Fund, a national joint fundraising committee. The party wired the money back to the Democratic Grassroots Victory Fund, as did other state parties that had received similar transfers, for the national party to handle the matter.

Iowa Senate Democratic Leader Janice Weiner, of Iowa City, said the debt will not derail campaign efforts.

At present, Weiner said, the Iowa Democratic Party is asking the Senate Majority Fund to repay only the interest on the line of credit.

“I’m not at all concerned about our ability to run campaigns this year,” Weiner said. “Lots of folks have been hit with this; not just us.”

Weiner emphasized the caucus is focused on upcoming elections.

“Our focus is on running strong campaigns in 2026,” she said. “This is something many Democratic organizations across the country had to deal with, and now we’re looking forward.”

Download: idp 2025 fundraising report 1-20.pdf

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