Senator Richard Blumenthal, the top Democrat on the Senate Permanent Subcommittee on Investigations, has sent letters to Tether, its CEO Paolo Ardoino and the consulting firm Nxum asking for records of their business dealings. The letters were sent on October 22, 2026.
Nxum was co-founded by Bo Hines, the former head of the White House crypto council, together with his father. Hines kept a stake in the firm while he worked in government.
Key facts
- A Wall Street Journal investigation published in mid-October reported that Tether paid Nxum about $6.3 million, under a deal struck in May 2025, while Hines was still the White House’s top crypto adviser.
- During that time Hines helped shape the GENIUS Act, the first US law for stablecoins, signed in July 2025. Tether is the issuer of the world’s largest stablecoin, USDT.
- Hines left the White House in August 2025. A month later Tether made him CEO of its new US division, which launched the US stablecoin USAT under the new law.
- Blumenthal called the terms “highly unusual” and said they raise concerns under federal ethics, anti-corruption and lobbying laws.
What the companies say
- Tether says it is aware of the allegations and that outside lawyers ran an internal investigation that found no evidence of wrongdoing. The company says it is reviewing the letter.
- Nxum says Hines was not involved in the Tether deal while in government and received no money from it during that time.
Context
- This is not Blumenthal’s first look at Tether. His staff earlier published a report claiming USDT is widely used in Iran-linked transactions, which Tether disputes. Earlier this month he also asked Cantor Fitzgerald, which holds Tether’s reserves, about its ties to the company.
- Democrats are the minority in the Senate, so Blumenthal’s power to force answers is limited for now. That could change if control of the Senate changes after the midterm elections.
- The White House crypto adviser post is currently empty after Hines’s successor, Patrick Witt, also left.
Why it matters
Tether issues the biggest stablecoin in the world, used by millions of people for trading and payments. Questions about whether it paid a sitting government official while he helped write the rules for stablecoins go to the heart of trust in the new US framework. A letter is not a charge, and no wrongdoing has been proven, but the probe could add political pressure on Tether and on how stablecoin rules are written and enforced.
This article is for information only and is not financial advice.
