Senator seeks Tether records over reported Nxum deal

Sen. Richard Blumenthal requested records from Tether CEO Paolo Ardoino about a reported $6.3 million deal between Tether and Nxum, a marketing company co-founded by former White House crypto adviser Bo Hines.

In a Thursday letter, Blumenthal asked for documents covering contracts, payments, communications and lobbying between Tether and Nxum. The Connecticut Democrat said the Senate Permanent Subcommittee on Investigations was examining the relationship and Hines’ role in lobbying over stablecoin legislation.

Blumenthal alleged that Hines kept a one-third stake in Nxum while serving as executive director of the President’s Council of Advisers on Digital Assets. The senator also alleged that Hines used encrypted messaging applications to coordinate lobbying and advocacy with Nxum, including efforts aimed at members of Congress who opposed or sought changes to the GENIUS Act.

The GENIUS Act establishes rules for stablecoins, including requirements for issuers and reserves. According to Blumenthal, messages reviewed by the subcommittee indicated that Tether coordinated with Nxum on lobbying related to the bill. He alleged that Ardoino instructed Nxum to “obliterate” the legislation’s opponents.

“The highly unusual terms and nature of Tether’s business relationship with both Nxum and Bo Hines raise alarming ethical and legal concerns,” Blumenthal wrote. He added that the arrangements indicated Tether may have known that payments to a White House official involved in shaping cryptocurrency legislation could be improper or unlawful.

Hines served as executive director of the President’s Council of Advisers on Digital Assets from January through August 2025. He then left the White House and joined Tether as a strategic adviser before becoming CEO of Tether US. Harry Jung, another Trump administration crypto adviser, left his government position in July 2026 and joined Nxum as a managing director in August.

President Donald Trump, his family and members of his administration have faced scrutiny over financial ties to the crypto industry and possible conflicts involving policies they support or oversee. Trump disclosed $1.4 billion in 2025 income from investments linked to crypto.

Blumenthal is the Democratic ranking member of the Senate Permanent Subcommittee on Investigations. Republicans control the Senate, limiting his authority. The Nov. 3 midterm elections could change control of the House and Senate and affect congressional investigations into the Trump administration’s ties to crypto companies.

On Friday, Kalshi contracts gave Democrats a 92% chance of winning the House and a 68% chance of winning the Senate in 2027. Tether did not immediately respond to a request for comment on the investigation or the reported Nxum agreement.