Sen. Richard Blumenthal, the top Democrat on the Senate Permanent Subcommittee on Investigations, has sent Cantor Fitzgerald a 13-item records request regarding the firm's business arrangement with Tether, the issuer of USDT, the world's largest stablecoin. The request is due by Oct. 23.
The letter, sent to Brandon Lutnick, Cantor's chairman and son of Commerce Secretary Howard Lutnick, asks how the firm verifies that Tether complies with U.S. sanctions and anti-money-laundering rules. It does not accuse Cantor of breaking a specific law.
Stake and Profit Growth
According to Blumenthal's letter, Cantor Fitzgerald's 5% stake in Tether rose from an estimated $600 million to approximately $10 billion since President Donald Trump returned to office. The letter also claims that Howard Lutnick has made more than $250 million during the same period, including a $192 million distribution from Cantor, on top of tens of millions in annual fees the firm collects for holding Tether's assets.
Custody and Asset Transfer Questions
Cantor acts as Tether's custodian, safeguarding the reserves meant to back every USDT in circulation. Blumenthal notes that although Tether claims to operate from El Salvador, the vast majority of its assets remain in the United States under Cantor's custodianship.
The senator also requests information about the terms of any loan that would allow Lutnick to transfer his Cantor stake to his children. This tracks a reported loan from Tether to a trust for Lutnick's four children, made around the time they purchased his stake in the firm.
Investigation Context
The letter describes the inquiry as an investigation into the illicit use of cryptocurrencies and potential self-enrichment by the Trump Administration with cryptocurrency firms. It comes 10 days after the subcommittee's Democratic staff released a report finding that 84% of sanctioned or seized crypto wallets linked to Iran and its proxies used USDT exclusively or nearly exclusively.
Blumenthal wrote that Tether has made millions in interest and investments from stablecoins used in illicit activities, and that Cantor Fitzgerald has profited from its relationship with Tether. He called the arrangement disturbingly lucrative.
Additional Requests
The senator also seeks Howard Lutnick's personal records on Tether from his tenure at Cantor, including any discussions with the White House or federal regulators and any lobbying on Tether's behalf. Other requests cover Cantor's know-your-customer policies, whether the firm has considered ending the relationship, and its communications with the President's Council of Advisors on Digital Assets.
