Senator Richard Blumenthal has asked Tether and Nxum Group, a consulting firm co-founded by Bo Hines, for records of payments tied to Hines. The requests follow a Wall Street Journal report that the payments began while Hines was still a White House crypto adviser. The inquiry is voluntary, not a subpoena.
Senator Richard Blumenthal, the ranking Democrat on the Senate Permanent Subcommittee on Investigations, sent letters on Oct. 22 to Tether and to Nxum Group. He wants details of payments to the consulting company that former White House crypto adviser Bo Hines co-founded. Hines now leads Tether's U.S. arm.
What the letters ask for
The letters seek contracts, communications and a payment breakdown, including dates, payment methods and cryptocurrency wallet addresses. Both set a Nov. 3 deadline for responses.
Blumenthal also asked why marketing firm Notorious and its CEO, Peter Vincer, served as an intermediary. He asked why Tether and Nxum began contracting directly after Hines left the White House.
According to the letter to Tether's CEO, the terms of the relationship raise concerns: "raise alarming ethical and legal concerns".
The Wall Street Journal report behind the inquiry
The requests follow a Wall Street Journal investigation that reported Nxum earned $6.3 million from a Tether-funded arrangement. The Journal said the payments began while Hines was helping shape stablecoin legislation at the White House, and that the total includes payments after he left government.
A Nxum representative told the Journal that Hines was unaware of the firm's Tether dealings while in government and had recused himself from company business. The representative also said Hines had no economic relationship with Tether while serving in the White House.
A minority-led inquiry
This is a minority-led inquiry that seeks voluntary cooperation, not a subpoena. Under the subcommittee's rules, the chair or another member the chair designates may authorize and issue subpoenas, so Blumenthal's ranking-member position does not confer that authority on its own.
Spokespeople for Tether didn't immediately respond to requests for comment. Prediction market Kalshi gives Democrats a 69% chance of winning the Senate. If Blumenthal returns to chair the subcommittee, he would gain greater subpoena powers.
Sources: CoinDesk, The Defiant
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