Michael Carbonara is running to represent Florida’s 22nd Congressional District, and the South Florida businessman has found a novel way to raise campaign funds by crypto “gambling.”
“Campaigns do invest in the stock market, they invest in treasury bills, and it’s not uncommon for campaigns to generate passive revenue or income based on the idle cash sitting there,” Carbonara told the Miami Herald in an interview. “So this was just one vehicle, and I was trying to show that this was something that could be done.”
Gamble Pays Off as Crypto Assets Surge
The strategy has paid dividends. Carbonara invested about $95,000 into the cryptocurrency Ethereum in June last year. Two months later, it was worth $170,000, generating $75,000 in profits, which he put into the campaign.
In total, he has reported $6 million in campaign investments. However, it appears the crypto money has been counted twice: once when he put it into his assets and again when he withdrew it to fund his campaign, according to the Herald.
The $6 million in his campaign represents about a third of the $18 million raised by all candidates in the 22nd District, making it the highest-funded congressional race in the state.
Carbonara’s Company Benefited From Bets
While investments in crypto are not prohibited for campaign funding, Carbonara has come under scrutiny as he used his former company, Ibanera, to process the transactions.
Carbonara’s campaign paid at least $21,000 in investment fees to the company across 16 transactions, including about $8,600 before he stepped down as CEO last October.
A candidate may use their own company under election law, provided the product is necessary and purchased at fair market value. It is debatable whether the crypto purchases were necessary for his campaign.
Ibanera has also faced lawsuits over withholding funds in cross-border payments from banks in the Bahamas and the UAE. Carbonara was personally named in another lawsuit brought by Michigan over the noise from the company’s cryptocurrency data-mining center near schools.
Kalshi Makes Carbonara Favorite to Win Primary
With additional funds behind the campaign, Carbonara is now the favorite to win the Republican primary at Kalshi. The platform now gives him a 54% chance of success, ahead of rivals David Burck and Belinda Keiser.
Carbonara had been a favorite before Keiser announced she was entering the race in June. At that point, she became the preferred candidate, with a 68% chance, but she soon slipped behind Carbonara and, more recently, Burck.
Keiser has been criticized for past Democratic donations and Keiser University’s business ties in China, although some polls still put her as the frontrunner.
With Carbonara emerging as the leading Republican candidate, the party is also favored to win the seat, moving from a 24% chance in April to 64% currently. Pia Dandiya will be his likely opponent as she has a 95% chance of winning the Democratic primary.
Lines Blurred Between Investments & Gambling
Carbonara’s unconventional method of funding his campaign toes the line between investments and gambling. Other candidates have crossed the line of what is acceptable, including Kyle Langford, a California gubernatorial candidate, who wagered on himself to win on Kalshi.
Kalshi fined him $2,000 and issued a 5-year platform ban. Langford later dropped out of the gubernatorial race and redirected his campaign toward a U.S. House seat.
Mark Moran in Virginia, Ezekiel Enriquez in Texas, and Matt Klein in Minnesota have also been found to place wagers on their own candidacies at Kalshi. The operator issued fines and bans in all instances.
The post Michael Carbonara Crypto Gamble Pays Off as He’s Favored to Win Florida Primary appeared first on CasinoBeats.
Michael Carbonara is running to represent Florida’s 22nd Congressional District, and the South Florida businessman has found a novel way to raise campaign funds by crypto “gambling.” “Campaigns do invest in the stock market, they invest in treasury bills, and it’s not uncommon for campaigns to generate passive revenue or income based on the idle
The post Michael Carbonara Crypto Gamble Pays Off as He’s Favored to Win Florida Primary appeared first on CasinoBeats.