Silicon Valley congressional race turns increasingly bitter

The contest for California’s 17th congressional district is becoming increasingly contentious well before voters head to the polls in early June, as incumbent Ro Khanna faces a growing challenge from tech entrepreneur Ethan Agarwal. Agarwal entered the race in March, supported by several prominent figures from the technology industry. His candidacy is widely seen as a response to Khanna’s endorsement of a proposed California ballot initiative that would impose a one-time 5% tax on individuals with a net worth exceeding $1 billion.

Since launching his campaign, Ethan Agarwal has focused his criticism on Ro Khanna by highlighting the incumbent’s stock trading activity during his time in office.

At the same time, the race has taken a sharper turn as news organisations covering the campaign have reportedly received anonymous packages containing digital court documents related to Agarwal’s past legal matters. These materials outline several cases connected to his former company, Aaptiv.

Among the documents is a $683,000 personal judgment issued after Agarwal stopped making payments on a $2 million copyright settlement with Universal Music Group, which had accused Aaptiv of using licensed recordings without proper authorisation. Another referenced case is a lawsuit, worth nearly $2 million, filed by a landlord over a lease for office space at One World Trade Centre, which Aaptiv allegedly abandoned during the COVID-19 pandemic.

The materials also include a 2019 federal lawsuit filed by Malibu Media, alleging that adult content was downloaded from an IP address associated with Agarwal. That case was later settled without any finding of liability, and the landlord's dispute was ultimately dropped. The copyright-related judgment involving Universal Music Group remains the most substantial issue, though the parties later reached another settlement after Agarwal had personally guaranteed the original agreement.

Agarwal addressed at least part of the controversy himself after the New York Post report highlighted the lawsuit involving adult content. He shared the headline publicly and acknowledged the situation, stating that transparency and authenticity are important for candidates, even when dealing with embarrassing matters.

Supporters have also weighed in. Investor Chamath Palihapitiya, one of Agarwal’s prominent backers, suggested that the emergence of opposition research reflects concerns about Agarwal’s chances in the race. As the primary approaches, the rivalry between Ro Khanna and Ethan Agarwal is becoming increasingly heated, with both policy disagreements and personal scrutiny shaping what is expected to be a closely watched contest in Silicon Valley.