Silicon Valley Congressional Race Turns Negative

The contest for California’s 17th congressional district is heating up months before the June primary, pitting a long-time incumbent against a well-funded challenger from the tech sector. The race between five-term Representative Ro Khanna and entrepreneur Ethan Agarwal has quickly turned contentious, with both sides launching pointed attacks. Agarwal entered the political arena in March, supported by a coalition of influential tech billionaires. Their backing was reportedly a direct reaction to Khanna’s endorsement of a proposed state ballot measure that would levy a one-time 5% wealth tax on California residents with fortunes exceeding $1 billion.

Agarwal’s campaign strategy has focused heavily on scrutinizing Khanna’s congressional stock trades, attempting to frame the incumbent’s financial activity as a vulnerability. In response, an opposition research campaign has surfaced, with newsrooms receiving anonymous digital dossiers detailing Agarwal’s past legal entanglements. The documents highlight several cases, most notably a $683,000 personal judgment against Agarwal stemming from a broken settlement with Universal Music Group. The music giant had previously sued his fitness app company, Aaptiv, for copyright infringement over unlicensed use of recordings. Agarwal had personally guaranteed a $2 million settlement but ceased payments near its completion, leading to the judgment before a subsequent agreement was reached.

The file also references a 2023 lawsuit from a landlord concerning Aaptiv’s abandoned lease at One World Trade Center during the pandemic, though that case was later dropped. A separate 2019 federal suit alleged that adult content was downloaded from an IP address linked to Agarwal. That case was brought by Malibu Media, a firm known for filing thousands of similar lawsuits nationwide, a practice critics have labeled a legal shakedown. It was settled with no finding of liability.

Agarwal has adopted a preemptive approach to the negative coverage. After the New York Post published a story with a sensational headline about the adult content lawsuit, he shared the article on social media. He framed the disclosure as an act of political transparency, acknowledging the embarrassment while stating voters deserve to know a candidate’s flaws. His prominent supporter, investor Chamath Palihapitiya, quickly defended him online, suggesting the leaked documents signal that Khanna’s campaign is growing concerned about Agarwal’s potential to win. The exchange underscores how personal history and financial dealings are becoming central themes in this high-stakes Silicon Valley political battle.