US Senator Richard Blumenthal has given Binance, Tether, World Liberty Financial, and Fight Fight Fight LLC until January 4, 2027, to provide records sought as part of ongoing Senate investigations into their operations and possible connections to high-profile political figures.
Blumenthal’s inquiries and deadlines
Blumenthal, who will soon chair the Senate Permanent Subcommittee on Investigations, issued follow-up letters to the four firms on Thursday. The correspondence asked them to begin submitting documents by November 30 and stated that the final deadline is set for the day after Democrats are expected to assume control of the Senate.
He wrote that failure to meet the January deadline could lead the panel to pursue “alternative measures to obtain compliance.” Under subcommittee rules, its chair has the authority to issue subpoenas if voluntary cooperation is not provided.
Binance, Tether, World Liberty Financial, and Fight Fight Fight LLC did not provide comments in response to requests for their reactions before the publication of this report.
Blumenthal identified a range of issues at the center of these inquiries, including foreign investments, ownership structures, and safeguards against conflicts of interest within companies associated with the cryptocurrency sector.
Focus on Trump-affiliated crypto ventures and sanctions compliance
The Senate’s scrutiny intensified in May 2025, when Blumenthal initiated an investigation into potential conflicts of interest tied to President Donald Trump’s involvement with crypto projects. He formally requested records from World Liberty Financial and Fight Fight Fight LLC, specifically seeking information about their ownership, foreign investments, and measures to prevent conflicts of interest. Lawyers representing World Liberty Financial denied any affiliation between their client and Fight Fight Fight LLC.
Blumenthal’s concerns expanded in June 2026 after reports of an Abu Dhabi investment firm’s $500 million deal to acquire a 49% stake in World Liberty Financial. He and four Senate Democrats pressed for hearings on the possible foreign influence such a transaction might represent.
Blumenthal warned that if the companies do not comply by January 4, the subcommittee would explore “alternative measures to obtain compliance,” referencing subpoena powers available to its chair.
The investigation also covers how exchanges and companies manage their compliance with US and international sanctions. In February, Blumenthal asked Binance for records on alleged transactions linked to Iranian entities and Russia’s so-called shadow fleet. Binance responded in March, rejecting the allegations and stating that, to its knowledge, no Iranian entity had conducted direct transactions through Binance accounts. Nevertheless, Blumenthal stated last week that Binance had not yet supplied any of the requested documentation.
Tether has come under similar scrutiny. Blumenthal renewed demands for information about sanctioned entities’ use of USDT and about Tether’s business dealings with Nxum, a firm co-founded by former White House crypto adviser Bo Hines.
Tether responds to allegations on USDT use by sanctioned groups
In September, Blumenthal released a report from the panel’s Democratic staff alleging that USDT had become an integral component of Iran’s shadow banking operations. Tether has denied these allegations, emphasizing that USDT does not function as a haven for sanctioned organizations and highlighting that it participated in freezing nearly $550 million worth of Iran-linked tokens during 2026.
According to Tether, the company worked with authorities to freeze Iran-linked tokens and disputes that USDT enables sanctioned actors to operate freely.
Ongoing pressure on leading crypto companies for transparency regarding transaction records and links to politically exposed persons has led to mounting compliance obligations and congressional oversight within the industry.
Given the intensifying scrutiny on high-profile firms and concerns about the involvement of sanctioned entities, investors and market analysts are closely monitoring relevant regulatory developments. CryptoAppsy’s live news monitoring helps users stay updated on compliance deadlines and political decisions that could influence the status of major tokens such as USDT. The app’s real-time alerts can automatically inform users when deadlines approach or when statements by officials could impact market sentiment.
