Key Takeaways
- • Sen. Richard Blumenthal, ranking member of the Senate Permanent Subcommittee on Investigations, sent a letter on Oct. 22 to Tether CEO Paolo Ardoino and Bo Hines demanding answers over more than $6 million in payments to Nxum, a consulting firm Hines co-founded with his father.
- • According to The Wall Street Journal, Tether agreed in May 2025 to pay Nxum $415,000 per month for a lobbying and public relations campaign, while Hines was leading the White House Council of Advisers for Digital Assets.
- • The Journal reported Hines allegedly coordinated Nxum lobbying of lawmakers over encrypted messaging apps on the GENIUS Act and pushed for provisions allowing Tether to operate outside the U.S. (the "Tether loophole").
- • Payments were routed in crypto through marketing firm Notorious before reaching Nxum; after Hines left the White House, Tether contracted Nxum directly and hired Hines as CEO of its U.S. operations.
- • Blumenthal has requested Tether's records on dealings with Nxum, Notorious and Hines by Nov. 6, 2026; a Tether spokesperson said an earlier external-counsel review "found no evidence of wrongdoing."
Summary
Sen. Richard Blumenthal (D-Conn.), ranking member of the Senate Permanent Subcommittee on Investigations, has demanded answers from Tether over reports that the stablecoin issuer paid more than $6 million to Nxum, a consulting firm co-founded by former White House crypto adviser Bo Hines. In a letter dated Oct. 22 to Tether CEO Paolo Ardoino and Hines, Blumenthal raised concerns about the arrangement.
According to The Wall Street Journal, Tether entered into a deal in May 2025 with Nxum, a small firm Hines started with his father, agreeing to pay $415,000 per month for a lobbying and public relations campaign. At that time Hines was leading the White House Council of Advisers for Digital Assets and had recently begun work on stablecoin legislation, yet he reportedly never divested his one-third stake in Nxum. The Journal reported that Hines coordinated with Nxum over encrypted messaging apps to pressure lawmakers who opposed the GENIUS Act or sought changes to it. He also allegedly pushed for provisions allowing Tether to keep operating outside the U.S. and to receive more time to comply, which became known as the "Tether loophole."
The payment structure was unusual. Rather than paying Nxum directly, Tether first sent crypto payments through a marketing firm called Notorious, which then passed the funds to Nxum. After Hines left the White House, Tether began contracting with Nxum directly, and within days hired Hines, later naming him CEO of its U.S. operations.
In a statement, Blumenthal said Tether's "alleged multimillion-dollar payment to a firm controlled by the White House official primarily responsible for cryptocurrency policy implicates federal ethics, anticorruption, and lobbying laws." He has asked Tether to produce records on its dealings with Nxum, Notorious and Hines by Nov. 6, 2026, and sent a similar letter to Nxum CEO Todd Hines. A Tether spokesperson told The Block that an earlier internal investigation by external counsel "found no evidence of wrongdoing."
According to The Wall Street Journal, Tether entered into a deal in May 2025 with Nxum, a small firm Hines started with his father, agreeing to pay $415,000 per month for a lobbying and public relations campaign. At that time Hines was leading the White House Council of Advisers for Digital Assets and had recently begun work on stablecoin legislation, yet he reportedly never divested his one-third stake in Nxum. The Journal reported that Hines coordinated with Nxum over encrypted messaging apps to pressure lawmakers who opposed the GENIUS Act or sought changes to it. He also allegedly pushed for provisions allowing Tether to keep operating outside the U.S. and to receive more time to comply, which became known as the "Tether loophole."
The payment structure was unusual. Rather than paying Nxum directly, Tether first sent crypto payments through a marketing firm called Notorious, which then passed the funds to Nxum. After Hines left the White House, Tether began contracting with Nxum directly, and within days hired Hines, later naming him CEO of its U.S. operations.
In a statement, Blumenthal said Tether's "alleged multimillion-dollar payment to a firm controlled by the White House official primarily responsible for cryptocurrency policy implicates federal ethics, anticorruption, and lobbying laws." He has asked Tether to produce records on its dealings with Nxum, Notorious and Hines by Nov. 6, 2026, and sent a similar letter to Nxum CEO Todd Hines. A Tether spokesperson told The Block that an earlier internal investigation by external counsel "found no evidence of wrongdoing."
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