- Blumenthal seeks records on Cantor Fitzgerald’s Tether partnership by October 23.
- The inquiry examines Cantor’s oversight of Tether’s audits and sanctions compliance.
- Blumenthal seeks details of the Lutnick family’s earnings from Cantor’s Tether ties.
Cantor Fitzgerald’s partnership with Tether has drawn attention from Senator Richard Blumenthal, who is seeking records on the firm’s financial gains, compliance oversight, and ties to Commerce Secretary Howard Lutnick’s family. The inquiry examines Cantor’s custody of Tether reserves alongside its investment in the stablecoin issuer.
In an October 8 letter, Blumenthal asked Cantor Chairman Brandon Lutnick to provide documents by October 23. The senator, the ranking Democrat on the Senate’s Permanent Subcommittee on Investigations, also requested that the firm preserve records concerning the partnership.
Cantor’s Tether Partnership Faces Compliance Questions
Central to the inquiry is how Cantor assesses Tether’s compliance with U.S. banking, anti-money-laundering and sanctions requirements. Blumenthal requested records related to Cantor’s custody of Tether’s reserves, including financial audits and other documentation concerning the assets held on Tether’s behalf.
He also requested details of Cantor’s ongoing due diligence, custody arrangements and policies for ending business relationships. Those questions include whether Cantor has reviewed terminating its partnership with Tether.
The requests follow a September 28 subcommittee minority report alleging that USDT had become a tool for Iranian shadow banking. The report also alleged that Tether failed to freeze funds in wallets associated with illicit actors.
Against that backdrop, Blumenthal asked what steps Cantor had taken to investigate allegations involving Iranian networks and Russian sanctions evasion.
Tether Stake and Partnership Revenue Draw Attention
Cantor began holding a portion of the U.S. Treasuries backing Tether’s reserves in 2021. Howard Lutnick led the firm at the time and helped negotiate its Tether investment in April 2024. Blumenthal’s letter states that Cantor Fitzgerald holds a 5% stake in Tether, which he estimates increased in value from $600 million to $10 billion after President Donald Trump returned to office.
The senator also said Cantor collects tens of millions of dollars annually from assets held for Tether. He requested annual revenue figures and a separate accounting of the Lutnick family’s earnings from the relationship.
Lutnick Family’s Financial Ties Face Review
Howard Lutnick stepped down from Cantor after his February 2025 confirmation as commerce secretary. His son Brandon became chairman, while another son became vice chairman. Blumenthal requested records concerning the ownership transfer, including any Tether loans or financing that helped facilitate it.
The letter also cited reports that Lutnick received over $250 million in income, including a $192 million distribution from Cantor. Separately, it sought communications concerning Tether after his departure, including discussions about fundraising, regulatory matters, and family ownership interests.
Related: Cantor Shareholders Approve Securitize SPAC Merger
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