Sen. Richard Blumenthal (D-Conn.) has opened an inquiry into Tether's reported multimillion-dollar payments to Nxum, a consulting firm co-owned by former White House cryptocurrency adviser Bo Hines, according to a letter sent to the stablecoin issuer. The probe raises questions about possible conflicts of interest and compliance with federal ethics and lobbying laws.
Letter to Tether's CEO
In an Oct. 22 letter to Tether CEO Paolo Ardoino, Blumenthal requested records detailing the company's relationship with Nxum. The inquiry follows a Wall Street Journal investigation reporting that the firm received roughly $6.3 million from Tether while Hines was helping shape crypto policy for President Donald Trump.
According to the Journal, Tether agreed in May 2025 to pay Nxum $415,000 per month for strategic communications, lobbying and public relations services. Hines retained a one-third ownership stake in the firm while serving as executive director of the White House Council of Advisers for Digital Assets.
Questions Over Stablecoin Legislation
Blumenthal alleged that Hines coordinated with Nxum through encrypted messaging applications while advocating for provisions in the GENIUS Act, the stablecoin legislation signed into law in July 2025. Those provisions reportedly included extending compliance deadlines and giving foreign stablecoin issuers such as Tether greater flexibility to keep serving American customers.
The senator also questioned the structure of the payments. Rather than contracting directly with Nxum, Tether allegedly routed cryptocurrency payments through another marketing firm, Notorious, before the funds reached Nxum's owners.
After Hines left the White House in August 2025, Tether began contracting directly with Nxum and later hired him to lead its newly established U.S. operations.
"The highly unusual terms and nature of Tether's business relationship with both Nxum and Bo Hines raise alarming ethical and legal concerns," Blumenthal wrote.
Denials and Investment Claims
The Journal reported that representatives for Hines denied he knew about or took part in the Tether arrangement while serving in government. Blumenthal also cited reports that Nxum has sought additional investment by stating that Tether intends to buy a 25% ownership stake in the firm for $56 million.
Records Requested by Nov. 6
Blumenthal asked for contracts, cryptocurrency payment records, wallet addresses and communications involving Tether, Nxum, Notorious and Hines. He sent a separate letter to Nxum CEO Todd Hines, Bo Hines' father, seeking similar information. Both companies have until Nov. 6 to respond.
The inquiry adds to Blumenthal's broader scrutiny of Tether and its political ties. Earlier this month, he requested information from Cantor Fitzgerald about its financial relationship with Tether, following a congressional report alleging that the USDT stablecoin facilitates transactions within Iran's shadow banking network. Cantor Fitzgerald, previously led by Commerce Secretary Howard Lutnick and now controlled by his sons, holds a minority stake in Tether and manages substantial assets backing USDT.
The latest inquiry centers on whether Tether's financial relationships with politically connected individuals improperly influenced federal cryptocurrency legislation. The allegations have not produced established findings of wrongdoing, and Tether has not commented publicly on the investigation.
