US Senate Probe Launches Into Tether Links With Former Trump Adviser

Tether Faces Senate Inquiry Over Marketing Deal

US Senator Richard Blumenthal has formally requested records from Tether, a major issuer of USDT, which is a digital currency designed to hold a stable value equivalent to one US dollar. The inquiry follows reports that Tether entered into a $6.3 million contract with Nxum, a marketing company co-founded by Bo Hines.

Blumenthal, the Democratic ranking member of the Senate Permanent Subcommittee on Investigations, sent a letter to Tether CEO Paolo Ardoino demanding documents related to contracts, payments, and communications between the two companies. The senator framed the probe as part of a broader look at how the Trump administration engaged with cryptocurrency firms.

Specific Allegations in the Senate Letter

• Blumenthal alleged that Hines worked closely with Nxum while serving as a White House official, coordinating lobbying efforts around stablecoin legislation.
• The letter claimed that Tether directly coordinated with Nxum on the GENIUS Act, a bill aimed at regulating stablecoins.
• The senator reported that encrypted messages suggested Tether CEO Ardoino urged Nxum to aggressively oppose the legislation's critics.
• Blumenthal argued that Tether likely knew it was improper for the company to pay Hines while he held a role shaping crypto laws.

Tether’s Official Response

A Tether spokesperson told Cointelegraph that the company is aware of the accusations. The company stated that it previously conducted an in-depth internal investigation into the matter with the help of external counsel. Tether said the investigation found no evidence of wrongdoing on its part.

Background on Hines and Other Officials

Bo Hines served as the executive director of the President’s Council of Advisers on Digital Assets from January to August 2025. After leaving the White House, he joined Tether as a strategic adviser and later became the CEO of Tether US. Additionally, Harry Jung, another crypto adviser in the Trump administration, left his position in July 2026 and joined Nxum as a managing director in August.

Midterm Elections Could Shape Future Oversight

Currently, Blumenthal has limited power to compel documents because Democrats do not control the Senate Permanent Subcommittee on Investigations. However, results from the 2026 midterm elections could change party control in Congress. If Democrats regain the majority, they would have greater authority to investigate financial ties between the Trump administration and the crypto industry. Prediction markets currently favor Democrats retaking control of both the House and Senate in 2027, with US Election Day set for November 3.

Where to read more

• Cointelegraph