Key Takeaways
- • Senate Democrat Richard Blumenthal sent separate records requests on Oct. 22 to Tether CEO Paolo Ardoino and Nxum Group CEO Todd Hines, seeking contracts, payment records, communications and lobbying materials.
- • The letters cite reported terms of a May 2025 agreement under which Tether would pay Nxum $415,000 per month for a strategic brand and public affairs plan, and reports of more than $6 million in total payments.
- • Former White House crypto adviser Bo Hines retained a one-third stake in Nxum while serving in the White House, according to the letters, which also cite reported messages about communications with Nxum partners concerning the GENIUS Act.
- • Both companies have until Nov. 3 to respond; the letters make no finding of wrongdoing and request information only.
Summary
Senator Richard Blumenthal, a Democrat, has launched a Senate inquiry into payments from Tether to Nxum Group, a consulting firm co-founded by former White House crypto adviser Bo Hines. On Oct. 22, Blumenthal sent separate records requests to Tether CEO Paolo Ardoino and Nxum Group CEO Todd Hines. Both letters ask for responses by Nov. 3 and seek contracts, payment records, communications and lobbying materials. The request to Tether specifically asks for payment dates, methods and cryptocurrency wallet addresses.
Blumenthal's letters cite reported terms of a May 2025 agreement under which Tether would pay Nxum $415,000 per month for a strategic brand and public affairs plan. They also reference reports of more than $6 million in payments to the firm. According to the letters, Hines retained a one-third stake in Nxum while serving in the White House, and they cite reported messages about his communications with Nxum partners concerning the GENIUS Act, the federal stablecoin law that became effective July 18, 2025.
Blumenthal said the terms and nature of the relationship raise ethical and legal concerns. The letters request information and do not make a finding of wrongdoing. The inquiry follows Blumenthal's earlier request for details about Tether's reserve custody through Cantor Fitzgerald, and the Oct. 22 letters concern Tether's business arrangement with Nxum and the firm's links to Hines.
Background on the relationship: Tether announced Hines as a strategic adviser on Aug. 19, 2025. On Sept. 12, the company said he would become future CEO of Tether USA\u20ae, its planned U.S. dollar-backed stablecoin, which Tether said is designed to comply with the GENIUS Act. Traders Union reported that Senate Democrats have expanded the Tether probe over payments to the Hines-linked firm.
Blumenthal's letters cite reported terms of a May 2025 agreement under which Tether would pay Nxum $415,000 per month for a strategic brand and public affairs plan. They also reference reports of more than $6 million in payments to the firm. According to the letters, Hines retained a one-third stake in Nxum while serving in the White House, and they cite reported messages about his communications with Nxum partners concerning the GENIUS Act, the federal stablecoin law that became effective July 18, 2025.
Blumenthal said the terms and nature of the relationship raise ethical and legal concerns. The letters request information and do not make a finding of wrongdoing. The inquiry follows Blumenthal's earlier request for details about Tether's reserve custody through Cantor Fitzgerald, and the Oct. 22 letters concern Tether's business arrangement with Nxum and the firm's links to Hines.
Background on the relationship: Tether announced Hines as a strategic adviser on Aug. 19, 2025. On Sept. 12, the company said he would become future CEO of Tether USA\u20ae, its planned U.S. dollar-backed stablecoin, which Tether said is designed to comply with the GENIUS Act. Traders Union reported that Senate Democrats have expanded the Tether probe over payments to the Hines-linked firm.
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