Senator Blumenthal Probes Tether Over Millions Paid to Ex-White House Adviser's Firm

U.S. Senator Richard Blumenthal has launched an inquiry into stablecoin issuer Tether regarding payments delivered to a consulting firm co-founded by Bo Hines, a former White House cryptocurrency adviser who now leads Tether's domestic operations ¹.

On Oct. 22, Blumenthal—the ranking Democrat on the Senate Permanent Subcommittee on Investigations—dispatched formal inquiry letters to both Tether and Hines' firm, Nxum Group ¹. The lawmaker cited reports that Nxum received millions of dollars in consulting payments from Tether while Hines was actively helping shape federal stablecoin policy inside the administration ¹. In a letter addressed to Tether Chief Executive Officer Paulo Ardoino, Blumenthal alleged that the commercial terms between Tether, Nxum, and Hines raise legal and ethical questions concerning potential payments issued to an active government official ¹.

Broadening Legislative Inquiries

The inquiry comes as Tether's flagship token, $USDT, changed hands at $0.9987 at the time of writing amid broader crypto market declines. Nxum, which was established by Hines alongside his father and a third partner, also served as the primary campaign-advertising vendor for a political action committee linked to Tether, according to reports cited in the correspondence ¹. Nxum recently added Harry Jung, another former White House crypto adviser, to its roster ¹. The advisory office itself has since emptied following the departure of Hines' successor, Patrick Witt ¹.

The move marks an expansion of Blumenthal's sustained oversight push targeting the stablecoin issuer. The senator previously issued a report scrutinizing Tether's links to Iranian financing and pressed for details on the company's relationship with Wall Street brokerage Cantor Fitzgerald ¹. Relatedly, Senator Blumenthal Urges DOJ and Treasury to Probe Tether Over Iran Financing, demonstrating an ongoing pattern of investigative pressure ¹.

Tether leadership has pushed back against Blumenthal's track record of inquiries. Earlier in the week of Oct. 22, Ardoino accused the lawmaker of publicizing investigative findings to the media prior to allowing the company to review or dispute the assertions ¹. Tether representatives did not immediately comment on the Nxum inquiry letters ¹.