Blumenthal probes Tether payments to Bo Hines' Nxum Group

Blumenthal sends letters to Tether and Nxum Group

Senator Richard Blumenthal, the ranking Democrat on the Senate Permanent Subcommittee on Investigations, is looking into payments that Tether reportedly made to Nxum Group, a consulting firm co-founded by former White House crypto adviser Bo Hines. He sent letters to Tether and to Nxum on Thursday.

Hines advised President Donald Trump on crypto policy before leaving the White House. He is now chief executive of Tether's U.S. arm.

The inquiry centers on stablecoin policy. Stablecoins are crypto tokens designed to hold a steady value, usually pegged to the U.S. dollar.

What the letters cover

• Blumenthal sent letters on Thursday to Tether and to Nxum Group, the consulting company Hines started with his father and another partner.
• The letters follow a Wall Street Journal report that Nxum received large payments for consulting work for Tether while Hines was still advising Trump on crypto policy, including on stablecoin issuers that matter to Tether's business.
• Blumenthal asked for details of those business arrangements.
• Spokespeople for Tether did not immediately respond to requests for comment.

What Blumenthal wrote to Tether's CEO

In his letter to Tether CEO Paulo Ardoino, Blumenthal said the terms and nature of the company's relationship with Nxum and Hines raise "alarming ethical and legal concerns."

He wrote that the arrangement indicated Tether "was likely well aware of the illegality and impropriety" of issuing payments to a current White House official with "such a direct role in shaping cryptocurrency legislation that was instrumental to its business."

Earlier reporting on Nxum's political work

CoinDesk reported earlier that Hines' company, which had little track record or experience in politics, was making millions of dollars as the main campaign-advertising provider for a political action committee associated with Tether.

Nxum has recently hired another former White House crypto adviser, Harry Jung. The White House office that advised Trump on crypto issues has since gone vacant, after the departure of Patrick Witt, who had replaced Hines as its executive director.

Blumenthal has focused significant attention on crypto in other areas as well, including Trump's memecoin and the Trump family crypto firm World Liberty Financial.

What is confirmed

• Blumenthal, as ranking Democrat on the investigations subcommittee, sent letters dated Thursday to Tether and to Nxum Group.
• Hines is a former White House crypto adviser and is now CEO of Tether's U.S. arm. Nxum was co-founded by Hines.
• The subcommittee is seeking information about the reported payments and the business relationship between Tether and Nxum.
• Tether had not commented when the article was published.

What is still unclear

The payment claims come from press reports cited in the letters, not from a public admission by Tether or Nxum. The exact amounts, timing and purpose of the payments are not confirmed in the available material.

Blumenthal's letter describes ethical and legal concerns. It does not establish that any law was broken, and no findings or charges have been announced.

It is also not yet known whether the subcommittee will take further steps beyond requesting information.

Why this matters

The review examines money that reportedly reached a firm owned by a former official while he was helping shape crypto policy, including rules for stablecoin issuers that were important to Tether's business. That question of whether policy work and private payments overlapped is the core of Blumenthal's stated concern.

Sources

• CoinDesk

Read also: Senate Democrat Inquires Into Tether Payments to Former White House Crypto Adviser