U.S. Senator Richard Blumenthal has requested records from Tether and consulting firm Nxum over reported multimillion-dollar payments involving former White House crypto adviser Bo Hines.
The Connecticut Democrat is examining potential ethics violations as lawmakers scrutinize connections between crypto companies and government officials involved in stablecoin legislation.
Tether Faces Questions Over Consulting Deal
According to reports, Tether began working with Nxum weeks after Hines became the White House’s leading crypto adviser. Hines co-founded the consulting firm with his father and helped advance the GENIUS Act, which established a federal framework for stablecoins.
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Tether later supported the legislation and introduced USAT, its U.S.-focused stablecoin. Blumenthal wants both companies to explain their business dealings with Hines and Nxum, citing potential concerns involving ethics, anticorruption and lobbying laws.
Tether has denied wrongdoing. A company spokesperson said external counsel had conducted an internal investigation into the allegations and found no evidence of misconduct.
Senate Scrutiny Extends Beyond Nxum
Blumenthal has also examined Tether’s reported connections to Iranian shadow banking and terrorist financing. The company has rejected his criticism, saying it helps authorities identify illicit actors.
Separately, Nxum recently hired Harry Jung, a former deputy director of the President’s Council of Advisors for Digital Assets. Patrick Witt also recently left his executive director role after his detail expired.
Blumenthal’s latest inquiry adds to congressional scrutiny of Tether’s business relationships and activities.
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