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Senate's top Democratic investigator looking into Tether payments to Bo Hines' firm
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Senator Richard Blumenthal, ranking Democrat on the Senate Permanent Subcommittee on Investigations, has launched a probe into Tether payments to Nxum Group. Nxum is a consulting firm co-founded by Bo Hines, a former White House crypto adviser who later became Tether’s top U.S. executive. On Thursday, Blumenthal sent letters to Tether and Nxum seeking details.
The Wall Street Journal reported last week that Nxum received large consulting payments from Tether while Hines advised President Donald Trump on crypto policy. That policy included stablecoin issuers significant to Tether. Blumenthal wrote to Tether CEO Paolo Ardoino that the relationship’s “highly unusual terms and nature” raise “alarming ethical and legal concerns.”
CoinDesk first reported that Hines’ company, with little political track record, was making millions as the main campaign-advertising provider for a PAC associated with Tether. Nxum recently hired Harry Jung, another former White House crypto adviser. The White House crypto office has since gone vacant after Patrick Witt departed as executive director.
Tether said external counsel previously conducted an in-depth internal investigation and found no evidence of wrongdoing. Ardoino this week criticized Blumenthal, saying the senator ignored important information and shared a report with the press before giving the company a chance to respond. The company has maintained its dealings were proper.
Blumenthal has focused intensely on crypto, including Trump’s memecoin, World Liberty Financial, Binance, and Tether’s ties to Iran and Cantor Fitzgerald. His latest probe adds to concerns about revolving doors between government crypto policy and industry. The scrutiny could intensify if Democrats retake the Senate.
Prediction market Kalshi gives Democrats a 69% chance of retaking the chamber. If Blumenthal becomes chair of the investigations subcommittee, he would gain significant subpoena power and agenda control. He has made clear crypto would be high on his list.
