Senator Richard Blumenthal Opens Inquiry Into Tether Payments to Bo Hines’ Firm

U.S. Senator Richard Blumenthal has expanded his scrutiny of the cryptocurrency industry by seeking information about reported payments from Tether to Nxum Group, a consulting firm co-founded by Bo Hines, the former White House crypto adviser who now leads Tether’s U.S. operations.

Blumenthal, the top-ranking Democrat on the Senate Permanent Subcommittee on Investigations, sent letters Thursday to Tether and Nxum Group, requesting details about their business relationship.

In his letter to Tether CEO Paolo Ardoino, Blumenthal questioned the arrangements between the stablecoin issuer, Hines and Nxum, arguing that they raised potential ethical and legal concerns. He suggested Tether may have understood the risks of paying a company linked to a serving White House official involved in shaping cryptocurrency legislation relevant to its business.

Reported Consulting Payments Draw Senate Scrutiny

The inquiry follows a Wall Street Journal report published last week that Nxum received substantial payments for consulting services provided to Tether while Hines was advising President Donald Trump and his administration on digital asset policy. His responsibilities included matters affecting stablecoin issuers, an area directly relevant to Tether’s business.

Blumenthal has asked both parties to provide more information about the reported arrangements.

Tether said it was aware of the allegations cited in the senator’s letter. In a statement, the company said outside legal counsel had previously conducted a detailed internal investigation and found no evidence of wrongdoing.

CoinDesk had earlier reported that Nxum, despite having limited experience and a short track record in political consulting, earned millions of dollars as the primary campaign advertising provider for a political action committee associated with Tether.

Nxum Adds Another Former White House Crypto Adviser

Nxum has also recently hired Harry Jung, another former official who worked as a White House adviser on cryptocurrency issues.

The administration’s crypto advisory office has since become vacant following Patrick Witt’s departure. Witt had taken over as executive director after Hines left the position.

The staffing changes come as questions about the relationships between crypto companies, political consultants and government officials continue to attract attention in Washington.

Blumenthal Expands Investigation Into Crypto Industry

Blumenthal has pursued several investigations involving the cryptocurrency sector, including President Trump’s memecoin, financial supporters of the president’s crypto ventures, the Trump family’s World Liberty Financial, Binance and Tether.

He previously released a report examining Tether’s financial connections to Iran. More recently, he sought information about the company’s relationship with Cantor Fitzgerald, its U.S. financial partner.

Ardoino criticized Blumenthal’s investigative work this week, accusing the senator of overlooking important information and sharing a report with the media before giving Tether an opportunity to review it or respond.

Potential Senate Majority Shift Could Expand Oversight

Although Democrats have remained in the Senate minority during Trump’s presidency, their prospects of regaining control of the chamber have improved in recent weeks.

If Democrats take the majority and Blumenthal returns to chair the investigations subcommittee, he would gain greater authority over its agenda and subpoena powers. He has indicated that cryptocurrency oversight would remain a major priority.

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

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