Richard Blumenthal Seeks Answers From Tether Over Payments to Bo Hines’ Consulting Firm
U.S. Senator Richard Blumenthal has launched an inquiry into reported payments Tether made to Nxum Group, a consulting firm co-founded by former White House crypto adviser Bo Hines, who now oversees the stablecoin issuer’s U.S. operations.
Blumenthal, the leading Democrat on the Senate Permanent Subcommittee on Investigations, sent letters Thursday to Tether and Nxum requesting information about their business dealings.
In his letter to Tether CEO Paolo Ardoino, Blumenthal questioned the nature of the company’s relationship with Hines and Nxum. He argued that the reported arrangements raised potential legal and ethical concerns because Hines had been involved in shaping cryptocurrency policy while serving in the White House.
Wall Street Journal Report Prompts Inquiry
The investigation follows a Wall Street Journal report last week alleging that Nxum received substantial consulting payments from Tether while Hines was advising President Donald Trump and his administration on crypto policy, including issues related to stablecoin issuers.
Blumenthal is seeking further details about the payments and the terms of the business relationship.
Tether said it was aware of the allegations cited in the senator’s letter. The company stated that outside legal counsel had already completed an extensive internal investigation and found no evidence of misconduct.
CoinDesk previously reported that Nxum, despite having limited experience in political consulting, earned millions of dollars by serving as the main campaign advertising provider for a political action committee linked to Tether.
Nxum Hires Another Former White House Adviser
Nxum recently added Harry Jung, another former White House official who worked on cryptocurrency policy, to its team.
The White House office responsible for advising Trump on digital asset issues is now vacant following Patrick Witt’s departure. Witt had succeeded Hines as the office’s executive director.
The developments have brought renewed attention to connections between crypto businesses, political consulting firms and officials involved in developing digital asset regulations.
Tether Faces Wider Congressional Scrutiny
Blumenthal has directed significant investigative attention toward the crypto industry, examining topics ranging from Trump’s memecoin and World Liberty Financial to Binance and companies supporting the president’s crypto-related ventures.
Tether has also been a recurring focus. Blumenthal previously published a report examining the stablecoin issuer’s financial links to Iran and later sought information about its relationship with Cantor Fitzgerald, its U.S. financial partner.
Ardoino criticized the senator’s investigative approach this week, claiming Blumenthal had ignored important information and shared his report with the media before allowing Tether to review the findings or respond.
Democrats’ Senate Prospects Could Affect Future Investigations
Democrats currently hold the Senate minority, but their chances of regaining control of the chamber have improved in recent weeks.
If the party wins a majority and Blumenthal resumes leadership of the investigations subcommittee, he would have greater control over its agenda and broader subpoena authority. He has signaled that cryptocurrency regulation and industry oversight would remain among his key priorities.
Kalshi’s prediction market placed the probability of Democrats retaking the Senate at 69% at the time of the report.
