Key Takeaways
- • Senator Richard Blumenthal sent letters on Thursday to Tether CEO Paolo Ardoino and Nxum Group requesting details of reported payments from Tether to the consulting firm.
- • Nxum Group is linked to Bo Hines, former White House top crypto adviser, who is now reported to be leading Tether's US operations.
- • The Wall Street Journal first reported the payments, which Blumenthal says were made while Hines was actively shaping US crypto policy, including the GENIUS Act.
- • Tether says its internal investigation found no evidence of wrongdoing and criticized Blumenthal for publicizing a report before the company could review or respond.
Summary
US Senator Richard Blumenthal has launched a fresh inquiry into stablecoin issuer Tether over reported payments to Nxum Group, a consulting firm linked to Bo Hines, the former White House top crypto adviser. According to the reports, Blumenthal sent letters on Thursday to Tether CEO Paolo Ardoino and to Nxum Group seeking details of the transactions and of the business connections between the companies, including the role Hines played in them.
The payments were first reported by the Wall Street Journal, which revealed that Nxum Group received significant payments from Tether while Hines was serving in the administration. Blumenthal has focused on timing. Hines was then actively involved in shaping US crypto policy, including the GENIUS Act, legislation mainly concerned with stablecoin regulation that could affect Tether directly. Blumenthal argues that the payments raise questions about possible conflicts of interest between Hines's business interests and his government responsibilities. Reports also note that Hines is now leading Tether's US operations.
Tether responded that its internal investigation found no evidence of wrongdoing. The company's CEO, Ardoino, criticized the senator's approach, arguing that he overlooked important information and published a report before allowing Tether to review or respond to it.
The inquiry is part of a broader Blumenthal effort to examine crypto industry ties to the Trump administration. He has previously questioned Trump's memecoin and other projects linked to the president's family, including World Liberty Financial, and has probed Binance's connection to sanctioned Iranian transactions. He has also published a report on Tether's financial connections to Iran and sought information on the company's ties to Cantor Fitzgerald.
The payments were first reported by the Wall Street Journal, which revealed that Nxum Group received significant payments from Tether while Hines was serving in the administration. Blumenthal has focused on timing. Hines was then actively involved in shaping US crypto policy, including the GENIUS Act, legislation mainly concerned with stablecoin regulation that could affect Tether directly. Blumenthal argues that the payments raise questions about possible conflicts of interest between Hines's business interests and his government responsibilities. Reports also note that Hines is now leading Tether's US operations.
Tether responded that its internal investigation found no evidence of wrongdoing. The company's CEO, Ardoino, criticized the senator's approach, arguing that he overlooked important information and published a report before allowing Tether to review or respond to it.
The inquiry is part of a broader Blumenthal effort to examine crypto industry ties to the Trump administration. He has previously questioned Trump's memecoin and other projects linked to the president's family, including World Liberty Financial, and has probed Binance's connection to sanctioned Iranian transactions. He has also published a report on Tether's financial connections to Iran and sought information on the company's ties to Cantor Fitzgerald.
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