Senate Probe Targets Tether Over $6.3M Deal With Trump-Linked Crypto Adviser

Senate Demands Tether Records on Nxum Deal

Senator Richard Blumenthal, the Democratic ranking member of the Senate Permanent Subcommittee on Investigations, has formally requested records from Tether CEO Paolo Ardoino following allegations that the stablecoin issuer entered into a $6.3 million contract with Nxum, a marketing company co-founded by former White House crypto adviser Bo Hines. According to a Wall Street Journal report, the arrangement has triggered federal scrutiny over potential conflicts of interest within the Trump administration’s digital asset policy framework.

In a formal letter to Ardoino, Blumenthal demanded documentation covering “records and information related to contracts, payments, communications, and lobbying” between Tether and Nxum. The senator characterized the investigation as part of a broader examination into what he described as the Trump administration’s “self-enrichment and self-dealings with cryptocurrency firms.”

Conflict of Interest Allegations

Hines held the position of executive director at the President’s Council of Advisers on Digital Assets from January through August 2025 while maintaining a one-third ownership stake in Nxum, according to Blumenthal’s letter. Rather than divesting from the company, Hines allegedly coordinated with Nxum over encrypted messaging applications regarding lobbying efforts and advocacy activities related to pending stablecoin legislation, the senator said.

According to Blumenthal’s account, communications revealed that Tether was directly coordinating Nxum’s lobbying strategy on the GENIUS Act, which would regulate stablecoins. The senator cited messages allegedly showing Ardoino requesting that Nxum “obliterate” opponents of the legislation. After leaving the White House in August 2025, Hines joined Tether as a strategic adviser before being elevated to CEO of Tether US. Separately, Harry Jung, another crypto adviser within the Trump administration, departed his government role in July 2026 and joined Nxum as a managing director the following month.

Tether Denies Wrongdoing Amid Broader Scrutiny

A Tether spokesperson responded to the allegations by informing Cointelegraph that the company was aware of the charges and that external counsel “found no evidence of wrongdoing” following an “in-depth internal investigation into the matter.”

The Tether probe reflects intensifying congressional focus on financial relationships between the Trump administration and cryptocurrency firms. Trump and his family have faced ongoing scrutiny regarding income derived from crypto-related activities; Trump disclosed earning $1.4 billion from cryptocurrency-related investments during 2025. While Blumenthal’s authority remains limited as a ranking minority member, the 2026 midterm elections could shift the balance of congressional power, potentially granting Democrats additional investigative authority beginning in 2027, when prediction markets suggest Democrats have substantial odds of regaining control of both chambers.

Source: Wall Street Journal, via Cointelegraph. Not financial advice.