Sen. Richard Blumenthal (D-Conn.), the ranking member of the Senate Permanent Subcommittee on Investigations, demanded records on Oct. 22 from Tether and from Nxum Group, a consulting firm co-founded by former White House crypto official Bo Hines. The request covers millions of dollars Tether reportedly paid the firm while Hines was working on stablecoin policy.
Blumenthal sent one letter to Tether CEO Paolo Ardoino and a second to Nxum CEO Todd Hines, Bo Hines’ father. Both set a Nov. 3, 2026 deadline and ask for contracts, payment details and communications involving Nxum, Bo Hines and related parties.
“Tether’s alleged multimillion-dollar payment to a firm controlled by the White House official primarily responsible for cryptocurrency policy implicates federal ethics, anticorruption, and lobbying laws,” Blumenthal wrote.
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What the Letters Cite
The letters build on an Oct. 14 report by The Wall Street Journal, which Unchained covered on Oct. 15. The WSJ reported, according to the letters, that Tether agreed in May 2025 to pay Nxum $415,000 a month, and more than $6 million moved from Tether to Nxum overall. Hines, then executive director of the White House’s crypto council, did not divest his one-third stake in the firm, the letter says, citing the paper.
Messages reviewed by the WSJ reportedly show Tether steering Nxum’s lobbying on the GENIUS Act, with Ardoino demanding that Nxum “obliterate” the bill’s opponents, according to the letter. Blumenthal wrote that Hines pushed for changes giving Tether more time to comply and room to keep operating offshore, provisions he said became known as the “Tether loophole.”
The letter says Tether first routed its crypto payments through a marketing firm, Notorious, led by Peter Vincer, and began paying Nxum directly only after Hines left government. Nxum later allegedly offered Notorious’ director more than $300,000 and a share of future Tether payments in return for a nondisclosure agreement, Blumenthal wrote.
Questions for Both Firms
Blumenthal asked Tether to break down every payment, including any wallet addresses used, and to hand over its records involving Hines from Jan. 20, 2025, to Aug. 9, 2025. Both letters ask whether Tether and Nxum have discussed Tether taking a stake in Nxum. The question follows the WSJ’s report that Nxum, while seeking new investment, claimed Tether planned to buy a 25% stake for $56 million. The Nxum letter also states that the firm never registered its lobbying with the House or Senate.
Hines left the White House in August 2025, and Tether announced on Aug. 19, 2025, that it had hired him as a strategic adviser. He now runs Tether’s U.S. operations.
A Nxum representative reportedly told the WSJ that Hines had no involvement in Tether business while he served in government. Blumenthal has separately urged Treasury and the Justice Department to investigate Tether over Iran’s use of USDT.
Related Listen: Tether Freezes Stolen Funds. Circle Doesn’t. Why?
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