US investment bank Cantor Fitzgerald is under scrutiny following a formal request from Senator Richard Blumenthal, who is questioning the firm’s lucrative ties to stablecoin issuer Tether. The probe seeks detailed records on Cantor’s partnership with Tether and information on the financial gains of Commerce Secretary Howard Lutnick’s family from these arrangements.
Congressional inquiry into Tether partnership
Senator Blumenthal, the ranking Democrat on the Senate’s Permanent Subcommittee on Investigations, wrote to Cantor Fitzgerald chairman Brandon Lutnick on Thursday. He asked for documentation about how the investment bank oversees Tether’s compliance with US banking and sanctions regulations, and all communications involving Howard Lutnick regarding Tether, including those after Lutnick’s departure from the firm.
Blumenthal raised concerns over national security, stating that Cantor Fitzgerald’s business dealings with Tether have become highly profitable but come “at the expense of America’s national security.”
Blumenthal expressed in his letter that both Tether and Cantor Fitzgerald have benefited financially from stablecoin activities, highlighting the potential risks associated with their partnership.
Cantor Fitzgerald, a longtime fixture in global financial services, acquired rights to a 5% stake in Tether in 2024. The company also manages custody of a significant portion of the stablecoin issuer’s US Treasury bill reserves—a key component of Tether’s dollar-pegged value. According to Blumenthal, Cantor’s Tether stake soared from an estimated $600 million to $10 billion after Donald Trump returned to the White House. He also stated that Howard Lutnick received over $250 million in that period, including a $192 million distribution from Cantor Fitzgerald.
| Stake | Estimated Value Before Trump | Estimated Value After Trump | Distributions to Lutnick |
|---|---|---|---|
| 5% in Tether | $600 million | $10 billion | $192 million (total over $250 million) |
Concerns over compliance and illicit finance
The inquiry follows recent findings by Senate Democratic investigators, who alleged that Tether’s USDt (USDT) token is being used by Iran’s shadow banking networks. Blumenthal has urged the US Treasury and the Department of Justice to initiate investigations into possible sanctions violations linked to these claims.
Tether, which issues the largest US dollar-pegged stablecoin by market capitalization, said it cooperates with law enforcement agencies and has frozen close to $550 million in Iran-linked USDT so far in 2025.
Tether emphasized in response that it has actively worked with US and global law enforcement, freezing substantial amounts connected to illicit activities throughout the year.
Cantor Fitzgerald’s involvement with Tether dates back to 2021 when the bank began acting as the custodian of US Treasuries backing Tether’s reserves.
Howard Lutnick served as Cantor Fitzgerald chairman and CEO during this period and spearheaded the firm’s investment in Tether in April 2024. Lutnick left Cantor after being confirmed as commerce secretary in February 2025. Following his departure, his son Brandon became chairman and another son was appointed vice chairman of Cantor Fitzgerald.
Senator Blumenthal is seeking additional records, including the specifics of Lutnick’s divestiture from Cantor, as well as information on any loans or other financial support Tether may have provided to Lutnick or his family to facilitate transferring control of the company to his children.
Audits and partnership review under scrutiny
Blumenthal has asked for information on whether Cantor Fitzgerald requires independent audits of Tether, whether the bank has ever reviewed ending the partnership with the stablecoin issuer, and what steps have been taken to investigate allegations of illegal financial activity and sanctions evasion.
He has requested Cantor Fitzgerald respond to his queries by October 23.
Cointelegraph contacted Cantor Fitzgerald and Tether for comment, but neither company responded immediately to requests for clarification.
Cantor Fitzgerald is a global financial services firm that offers investment banking, asset management, and other business services. Tether is a leading stablecoin issuer known for its USD-pegged digital token, widely used in cryptocurrency markets.
Mini dictionary: Cantor Fitzgerald is a major US investment bank specializing in financial services such as investment banking, brokerage, and trading, while Tether is a company that issues USDT, a widely used stablecoin pegged to the US dollar and backed mostly by US Treasury bills and other reserves.
