Tether’s reported $6.8M payment to Nxum Group, co-founded by ex-White House crypto advisor Bo Hines, has drawn congressional scrutiny.
According to Senator Richard Blumenthal, a ranking Democrat on the Senate Permanent Subcommittee on Investigations (PSI), the allegations raise ethics and corruption concerns.
For further clarity, Blumenthal asked Tether to clarify the alleged payments and potential conflict of interest by 3rd November. He wrote,
Tether’s alleged multimillion dollar payment to a firm controlled by the White House official primarily responsible for cryptocurrency policy implicates federal ethics, anti-corruption, and lobbying laws.
Sen. Blumenthal wants Tether to submit all payments to Bo Hines, including the crypto wallet addresses used, between January and August 2025. The Senator also asked for documentation of all lobbying services Nxum offered Tether.
Tether’s growing regulatory scrutiny
Bo Hines left the White House Crypto Council last August and was shortly hired by Tether as a strategic advisor. He now oversees Tether’s U.S operations.
While serving as President Trump’s Chief Crypto Advisor, Tether reportedly routed payments through a third-party marketing firm called Notorious. Hines’ Nxum allegedly began getting direct payments after he left White House last August. Blumenthal also sought clarity on the arrangement with Notorious.
In fact, some reports alleged that the payments by Tether were meant to seek more time to comply with U.S GENIUS Act provisions and keep its offshore operations.
For its part, Tether acknowledged knowing the allegations,which were first reported by the Wall Street Journal in mid-October. However, the stablecoin issuer denied the claims,
External counsel previously conducted an in-depth internal investigation into the matter, which found no evidence of wrongdoing.
Earlier in October, Blumenthal sought clarity on Tether’s relationship with Cantor Fitzgerald, the issuer’s reserve custodian. The Senator also pressed the Department of Justice (DOJ) to investigate Tether’s role in Iranian crypto illicit flows.
Despite growing Tether scrutiny, however, USDT adoption has continued to rise, especially overseas. Total USDT users crossed 700M for the first time in Q3, translating to 6% quarterly growth. Over $70B or 39% of USDT supply is now dominated by savers, underscoring that the stablecoin goes beyond just payments.
Final Summary
- Senator Blumenthal raised ethics and corruption concerns about Tether’s alleged $6.8M payments to ex-Trump crypto advisor Bo Hines.
- Tether denied the claims and any wrongdoing, citing an ‘in-depth internal investigation.’
