Two National Union of Workers officials linked to a fraudulent Black Lives Matter page on Facebook have now been sacked over the scandal.
American news network CNN reported that a Facebook page purporting to be part of the highly-popular anti-racism campaign was a scam with ties to a NUW official, Ian Mackay.
The second official has not been identified.
CNN said that while about $US129,000 went to Black Lives Matter causes in the United States, some money was transferred to Australian bank accounts.
NUW offical Ian Mackay. Source: CNN
The union's national secretary Tim Kennedy confirmed on Wednesday two officials had been terminated as an investigation continued into the claims.
"The NUW is deeply distressed and appalled by a CNN report regarding sham Black Lives Matter Facebook pages and websites," Mr Kennedy said.
He said the NUW was not involved in and had not authorised any activities relating to claims made in CNN's story.
"The claims made in the report, and subsequent reports, betray the values of the NUW and are abhorrent to all the hard-working NUW officials and members who are tarnished by these claims," Mr Kennedy said.
"Our values of respect, dignity and equality define us. Every day, we represent workers organising collectively and struggling for a fair go.
"We stand in solidarity with Black Lives Matter and like grassroots activist organisations nationally and internationally."
Mr Mackay, who has been with the union for about seven years and was most recently based in Perth, has dozens of web domains registered to his NUW email address including many with black rights slogans.
He told CNN he bought and sold domain names as a "personal hobby", including a Black Lives Matter-related web address.
It is It is understood the union is examining the buying and selling of web addresses as part of its investigation.
The Black Lives Matter movement has garnered a huge level of support all around the world. Source: AAP
AAP has seen a list of more than 120 web domains linked to Mr Mackay's union email address, which includes many relating to sex, gambling and banks.
These included freethaisex.com, eteengirl.com, rugbyunionbetting.com, anzlogin.com and nablogin.com
Buying and selling web addresses, often described as "domain flipping", is not against the law.
