Sen. Richard Blumenthal (D-Conn.) has launched an investigation into Tether’s reported multimillion-dollar payments to a consulting firm co-owned by former White House cryptocurrency adviser Bo Hines, raising concerns about potential conflicts of interest and violations of federal ethics and lobbying laws.
Key Takeaways
- Sen. Richard Blumenthal is probing Tether’s reported $6.3 million payments to a consulting firm co-owned by former White House crypto adviser Bo Hines.
- Blumenthal raised concerns that Hines may have influenced stablecoin legislation benefiting Tether while retaining an ownership stake in the firm.
- Blumenthal requested contracts, payment records, and communications from Tether and the consulting firm by Nov. 6, citing potential ethics and lobbying violations.
Senator Blumenthal Seeks Answers From Tether
In an Oct. 22 letter to Tether CEO Paolo Ardoino, Blumenthal demanded records detailing the stablecoin issuer’s relationship with Nxum, a consulting firm co-founded by Hines, following a Wall Street Journal investigation that revealed the company allegedly received approximately $6.3 million from Tether while Hines helped shape crypto policy for President Donald Trump.
According to the Journal, Tether agreed in May 2025 to pay Nxum $415,000 monthly for strategic communications, lobbying, and public relations services. Hines retained a one-third ownership stake in the firm while serving as executive director of the White House Council of Advisers for Digital Assets.
Blumenthal alleged that Hines coordinated with Nxum through encrypted messaging applications while advocating for provisions in the GENIUS Act, the landmark stablecoin legislation signed into law in July 2025.
Those provisions reportedly included extending compliance deadlines and allowing foreign stablecoin issuers such as Tether greater flexibility to continue serving American customers.
The senator also questioned Tether’s unusual payment arrangements. Rather than contracting directly with Nxum, Tether allegedly routed cryptocurrency payments through another marketing firm, Notorious, before the funds were distributed to Nxum’s owners.
After Hines departed the White House in August 2025, Tether began contracting directly with Nxum and subsequently hired Hines to lead its newly established 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,” Blumenthal wrote.
The Journal reported that Hines’ representatives denied he knew about or participated in the Tether deal while serving in government. Blumenthal also cited reports that Nxum has solicited additional investment by claiming Tether intends to purchase a 25% ownership stake in the firm for $56 million.
The senator requested contracts, cryptocurrency payment records, wallet addresses, and communications involving Tether, Nxum, Notorious and Hines. He sent a separate letter to Nxum CEO Todd Hines, Bo Hines’ father, seeking similar information.
Both companies have until Nov. 6 to respond.
The investigation adds to Blumenthal’s growing scrutiny of Tether and its political connections. Earlier this month, the senator demanded information from Cantor Fitzgerald about its financial relationship with Tether, following a congressional report alleging that the company’s USDT stablecoin facilitates transactions within Iran’s shadow banking network.
Cantor Fitzgerald, previously led by Commerce Secretary Howard Lutnick and now controlled by his sons, owns a minority stake in Tether and manages substantial assets backing USDT.
Blumenthal’s latest inquiry focuses on whether Tether’s financial relationships with politically connected individuals improperly influenced federal cryptocurrency legislation. The allegations have not resulted in established findings of wrongdoing. Tether has yet to comment publicly on the investigation.