Blumenthal Probes Tether Payments to Firm Founded by Former White House Crypto Adviser

U.S. Senator Richard Blumenthal has requested information from Tether about reported payments to Nxum Group, a consulting business co-founded by Bo Hines, the former White House cryptocurrency adviser who now leads Tether’s U.S. division.

Blumenthal, the senior Democrat on the Senate Permanent Subcommittee on Investigations, sent letters Thursday to Tether and Nxum seeking details about the companies’ business arrangements.

In his letter to Tether CEO Paolo Ardoino, Blumenthal questioned whether the relationship raised ethical and legal issues, given Hines’ previous role in shaping cryptocurrency policy for the Trump administration.

Reported Payments Prompt Congressional Questions

The inquiry follows a Wall Street Journal report that Nxum received substantial consulting fees from Tether while Hines was advising President Donald Trump on digital asset policy. His responsibilities included issues affecting stablecoin issuers, an area closely connected to Tether’s business.

Blumenthal is seeking documentation and explanations concerning the reported payments and the terms of the relationship.

Tether said it was aware of the allegations cited in the senator’s letter. The company maintained that an external legal team had previously conducted a detailed internal investigation and found no evidence of wrongdoing.

CoinDesk had earlier reported that Nxum earned millions of dollars as the main campaign advertising provider for a political action committee linked to Tether, despite having limited experience in political consulting.

Nxum Expands Its Roster of Former Government Advisers

Nxum recently hired Harry Jung, another former White House official who worked on cryptocurrency policy.

The White House office that advised Trump on digital asset matters has since been left vacant following Patrick Witt’s departure. Witt had taken over as executive director after Hines left the role.

The developments have renewed attention on the connections between crypto businesses, political consulting firms and officials involved in shaping industry regulations.

Tether Remains a Focus of Blumenthal’s Investigations

Blumenthal has pursued multiple inquiries into the cryptocurrency sector, covering Trump’s memecoin, supporters of the president’s crypto ventures, World Liberty Financial, Binance and Tether.

His scrutiny of Tether has included a report on the company’s financial connections to Iran and requests for information about its relationship with Cantor Fitzgerald, its U.S. financial partner.

Tether CEO Paolo Ardoino criticized the senator’s work this week, alleging that Blumenthal ignored relevant information and shared his report with the press before giving the company an opportunity to examine the findings or respond.

Potential Democratic Senate Majority Could Expand Oversight

Democrats currently hold the minority in the Senate, but their prospects of regaining control have improved in recent weeks.

If Democrats win a majority and Blumenthal again chairs the investigations subcommittee, he would have greater control over its agenda and expanded subpoena powers. He has indicated that cryptocurrency oversight would remain a key priority.

At the time of the report, prediction market Kalshi put the probability of Democrats retaking the Senate at 69%.