Murray, Schrier, WA Dems got campaign money from indicted FTX founder

U.S. Sen. Patty Murray, U.S. Rep. Kim Schrier and the Washington State Democratic Party received political donations from indicted cryptocurrency entrepreneur Samuel Bankman-Fried, who federal prosecutors say used embezzled money to contribute to political campaigns.

Bankman-Fried was arrested Monday in the Bahamas. Federal prosecutors alleged Tuesday that he illegally diverted customer money from crypto exchange FTX to Alameda Research, the crypto hedge fund Bankman-Fried cofounded, and to donate to political causes.

FTX had been a major player in the emerging crypto industry before it abruptly imploded last month, amid reports that $8 billion in customer funds were missing. The firm filed for bankruptcy protection on Nov. 11.

Before that stunning collapse, Bankman-Fried – widely known by his initials, SBF – had thrown his wealth around to become a player in politics nationally and in Washington state.

Campaign finance records show he spent around $40 million on political contributions in the 2022 election cycle, making him one of the largest political donors in the country.

Virtually all Bankman-Fried’s publicly reported political donations went to support Democratic candidates. He said in an interview last month he’d donated a roughly equal amount to Republicans through “dark money” conduits that don’t have to be publicly reported.

In Washington, Murray received $5,800 from Bankman-Fried in July 2021 for her Senate reelection campaign. The state Democrats received $10,000 from Bankman-Fried in October of this year, routed through the Democratic National Committee.

Also in October, Bankman-Fried donated $2,900 to the Kim Schrier Victory Fund, a joint fundraising committee supporting Schrier’s successful reelection bid.

In his largest political donation in Washington this year, Bankman-Fried gave $135,000 to a Seattle initiative campaign trying to institute “approval voting” for local elections. The measure was rejected by voters, who instead OK’d a plan to adopt a ranked-choice voting system by 2027.

Alameda Research contributed more than twice that amount, $315,000 to a 2020 campaign called Seattle for a Healthy Planet. The group appeared to be preparing for a potential city ballot measure in early 2020 that never materialized.

Schrier and Murray’s campaigns both indicated they’re parting with the Bankman-Fried donations.

Libby Carlson, a Schrier campaign spokesperson, said the $2,900 donation to her victory fund was donated this week to Northwest Harvest, the nonprofit group supporting food banks, “to make sure Washington families have enough to eat this holiday season.”

Murray plans to donate the $5,800 to a Washington state charity before the end of the year and “believes Mr. Bankman-Fried should absolutely be held accountable for any crimes he committed,” spokesperson Amir Avin said in an emailed statement.

That was in line with other prominent Democratic politicians who have said they’ll regift the Bankman-Fried cash to charity. Last month, Sen. Kirsten Gillibrand of New York said she’d donate $16,600 she’d received from SBF to a Bronx charity.

Meanwhile, the Washington State Democratic Party said that it never asked for political donations from Bankman-Fried or his businesses, and that the $10,000 donation came indirectly through the DNC’s state party fund.

“We don’t select any of the donors that give to this State Party Fund,” Washington Democratic Party chair Tina Podlodowski said in an emailed statement.

The state Democrats are waiting on guidance from the DNC on what to do with the money, Podlodowski said. She added that state Democrats let the DNC know the party would assist in any investigation of illegal campaign finance activity.

Bankman-Fried’s brother, Gabriel Bankman-Fried, also donated to Washington politicians. He stepped down as director of nonprofit Guarding Against Pandemics, an effort helped by his brother’s funding, last month. He faces no criminal charges.

Gabriel Bankman-Fried donated $5,800 each to the campaigns of U.S. Rep. Derek Kilmer, U.S. Rep. Suzan DelBene and Murray this year.

DelBene introduced a bill in 2020 that would have made up to $200 gained from crypto transactions tax-deductible, but it wasn’t taken up in committee.

That bill was introduced “long before anyone was talking about the family,” DelBene spokesperson Nick Martin said in an email.