Senator Blumenthal probes Tether over $6M payments to firm tied to ex-White House adviser

U.S. Senator Richard Blumenthal has launched an investigation into Tether, the world’s largest stablecoin issuer, regarding reported payments totaling approximately $6.3 million to Nxum, a consulting firm co-founded by Bo Hines.

Hines previously served as the executive director of the White House Council of Advisers on Digital Assets, where he played a role in shaping the GENIUS Act, a landmark federal framework for stablecoins. Blumenthal’s inquiry, conducted through the Senate Permanent Subcommittee on Investigations, seeks to determine if there were conflicts of interest, ethics violations, or improper lobbying coordination between Tether and Nxum while Hines was involved in federal crypto policy.

The investigation focuses on whether Hines maintained an ownership stake in Nxum while advocating for legislative provisions that could benefit Tether. Tether has responded to the allegations, stating that an internal investigation conducted by external counsel found no evidence of wrongdoing. The company is currently reviewing the senator’s formal request for records, including contracts, payments, and communications.