Senator Probes Tether Over $6.3M Deal With Ex-Advisor

What Is the TetherUSDT+0.15% Investigation About?

U.S. Senator Richard Blumenthal is looking closely into Tether, the company behind the USDT stablecoin.

On October 22, the senator sent a formal letter to Tether CEO Paolo Ardoino. He requested records about payments Tether made to Nxum, a consulting firm tied to former White House crypto advisor Bo Hines.

The probe comes after reports revealed that Tether paid roughly $6.3 million to Nxum while Hines was actively helping shape official digital asset policy for the government.

The Details Behind the $6.3 Million Deal

According to an investigation by The Wall Street Journal, Tether signed an agreement with Nxum back in May 2025.

Under that agreement, Tether agreed to pay Nxum $415,000 every month for strategic communications, public relations, and lobbying services.

The main concern revolves around potential conflicts of interest. Hines kept a one-third ownership stake in Nxum while serving as executive director of the White House Council of Advisers for Digital Assets.

Questions Around Policy and the GENIUS Act

Senator Blumenthal raised concerns that Hines may have influenced key rules that directly benefited Tether.

During his time at the White House, Hines helped shape the GENIUS Act, landmark stablecoin legislation that was signed into law in July 2025.

Blumenthal alleged that Hines communicated with Nxum using encrypted messaging applications while working on the bill.

The final legislation included provisions extending compliance deadlines and offering foreign stablecoin issuers like Tether greater flexibility to operate in the United States.

Unusual Payment Routing and Job Changes

The senator also called attention to how Tether routed its payments to Nxum.

Rather than paying Nxum directly, Tether allegedly sent cryptocurrency payments through another marketing firm named Notorious, which then distributed the funds to Nxum's owners.

This structure changed in August 2025 when Hines left his role at the White House.

After Hines departed, Tether began contracting directly with Nxum and subsequently hired Hines to run its newly created U.S. operations.

The highly unusual terms and nature of Tether's business relationship with both Nxum and Bo Hines raise alarming ethical and legal concerns.

Potential Investment Claims and Record Requests

The investigation also touches on Nxum's efforts to pitch outside investors.

Reports cited by Blumenthal indicate that Nxum solicited extra capital by claiming Tether planned to buy a 25% stake in the firm for $56 million.

To clear things up, Blumenthal requested copies of contracts, wallet addresses, crypto payment records, and all communications between Tether, Nxum, Notorious, and Hines.

A separate letter demanding similar records was sent to Nxum CEO Todd Hines, who is Bo Hines' father. Both parties have until November 6 to respond.

Broader Political Scrutiny and Current Status

This probe is part of a wider effort by Senator Blumenthal to examine Tether's ties to political figures.

Earlier in the month, Blumenthal asked financial firm Cantor Fitzgerald for details on its relationship with Tether. That inquiry followed a congressional report regarding USDT's potential role in Iran's shadow banking system.

Cantor Fitzgerald holds a minority stake in Tether and manages significant backing assets for USDT. The firm was formerly run by Commerce Secretary Howard Lutnick and is now managed by his sons.

Representatives for Hines denied that he had any knowledge of or role in the Tether deal while working in government.

Tether has not commented publicly on the ongoing probe. As of now, the investigation is centered on gather facts, and no legal wrongdoing has been established.