Senator Richard Blumenthal, the ranking member of the Senate Permanent Subcommittee on Investigations, has requested records from Tether and consultancy firm Nxum Group following allegations of multimillion-dollar payments and potential conflicts involving federal cryptocurrency policy.
Allegations of Ethics and Lobbying Conflicts
The investigation centers on millions of dollars Tether reportedly paid to Nxum Group while Bo Hines, co-founder of Nxum, worked in the White House as executive director of the crypto council. Blumenthal sent letters to Tether CEO Paolo Ardoino and Nxum CEO Todd Hines, setting a Nov. 3, 2026 deadline for full disclosure of contracts, payment details, and communications involving Bo Hines and other relevant parties.
The senator cited possible violations of federal ethics, anti-corruption, and lobbying laws due to Tether’s payments to a firm tied to an official crafting stablecoin policy in the White House.
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, Blumenthal wrote in his letter.
According to documentation referenced in the Senate letters, The Wall Street Journal reported that Tether agreed in May 2025 to pay Nxum $415,000 per month, with total transfers exceeding $6 million. Bo Hines, while still working as a senior crypto official, reportedly retained his one-third ownership in Nxum.
Lobbying Efforts and “Tether Loophole” Claims
Messages reviewed by The Wall Street Journal reportedly show Tether directing Nxum’s lobbying activities around the GENIUS Act. In particular, Ardoino purportedly urged Nxum to aggressively counter the bill’s opponents. Blumenthal alleged that Hines advocated for provisions in the bill giving Tether additional time to comply with regulations and enabling offshore operations—elements he said became known in Washington circles as the “Tether loophole.”
Blumenthal has requested a detailed breakdown of every payment from Tether to Nxum, including information about any wallet addresses used. He also asked for all Tether records involving Bo Hines from Jan. 20, 2025, to Aug. 9, 2025.
Stake Acquisition and Registration Questions
Both letters inquire whether Tether and Nxum have ever discussed Tether acquiring a stake in the consultancy. This question follows claims in The Wall Street Journal’s investigation that Nxum, while seeking new investors, stated Tether intended to purchase a 25% stake for $56 million.
The documents note that Nxum never registered its lobbying activities with either the House or Senate as required by law. Hines left his White House position in August 2025 and was promptly hired by Tether as a strategic adviser, later becoming head of Tether’s U.S. operations.
A Nxum representative reportedly told The Wall Street Journal that Hines was not involved in Tether-related business during his government service. Meanwhile, Blumenthal has also called on the Treasury and Justice Department to investigate Tether’s possible ties to Iran’s use of USDT.
Market Vigilance and Investor Adaptation
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Messages reviewed by the WSJ reportedly show Tether steering Nxum’s lobbying on the GENIUS Act, with Ardoino demanding that Nxum “obliterate” the bill’s opponents, according to the letter.
