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Crypto PAC drops $1.75M on Texas GOP Senate candidate Paxton

Crypto PAC spends millions on ads; prediction market fines candidates for insider betting.

  • The crypto-aligned Fellowship PAC spent over $3 million on political advertising this week, with $1.75 million going to support Texas Republican Senate candidate Ken Paxton.
  • Three U.S. political candidates, including one from Texas, were fined and suspended by the Kalshi prediction market for betting on their own races.
  • The Fellowship PAC launched in September with major crypto industry backing and aims to support “pro-crypto” candidates, following a trend of PACs like Fairshake making multi-million dollar investments in elections.

A cryptocurrency political action committee invested heavily in U.S. Senate races this week, while a prediction market penalized candidates for insider betting. The crypto-aligned Fellowship PAC, led by a Tether executive, reported spending more than $3 million on advertising. The majority of those funds targeted the Texas Republican primary.

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According to a filing with the U.S. Federal Election Commission, the PAC spent $1.75 million supporting Texas Attorney General Ken Paxton. Paxton faces incumbent Senator John Cornyn in a May 26 runoff for the Republican Senate nomination.

Other expenditures included $350,000 for Mike Collins in Georgia and $250,000 for Blake Miguez in Louisiana. Consequently, all advertising spending was handled by the Nxum Group, a marketing firm co-founded by a former White House crypto adviser.

Meanwhile, prediction markets platform Kalshi penalized three political candidates for betting on their own races. According to the company, Texas candidate Ezekiel Enriquez was banned for five years and fined $784.20. He had purchased less than $100 worth of contracts related to his congressional district candidacy.

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