Senate Democrat Seeks Details on Tether Payments to Bo Hines’ Nxum Group

U.S. Senator Richard Blumenthal has opened an inquiry into reported payments from stablecoin issuer Tether to Nxum Group, a consulting firm co-founded by Bo Hines, who served as a White House crypto adviser before taking charge of Tether’s U.S. operations.

Blumenthal, the ranking Democrat on the Senate Permanent Subcommittee on Investigations, sent letters Thursday to Tether and Nxum requesting information about their financial and business arrangements.

In his letter to Tether CEO Paolo Ardoino, Blumenthal raised questions about the relationship, arguing that payments to a firm linked to a government official involved in developing cryptocurrency policy could raise ethical and legal concerns.

Report on Consulting Fees Triggers Senate Inquiry

The investigation follows a Wall Street Journal report alleging that Nxum received sizable payments for consulting services from Tether while Hines was advising President Donald Trump and his administration on crypto policy, including matters concerning stablecoin issuers.

Blumenthal has asked for further details about the reported payments and the terms governing the relationship.

Tether said it was aware of the allegations cited in the senator’s letter. The company said an outside legal team had previously conducted an extensive internal review and found no evidence of wrongdoing.

CoinDesk earlier reported that Nxum earned millions of dollars as the principal campaign advertising provider for a political action committee associated with Tether, despite having limited experience in political consulting.

Nxum Adds Another Former White House Crypto Adviser

Nxum has recently hired Harry Jung, who also previously worked as a White House adviser on cryptocurrency issues.

The administration’s office responsible for advising President Trump on crypto policy has since been left vacant following Patrick Witt’s departure. Witt had succeeded Hines as executive director.

The developments have drawn attention to the connections between crypto companies, political consulting firms and former government officials involved in digital asset policymaking.

Blumenthal Continues Broader Crypto Oversight

Tether is one of several cryptocurrency-related subjects Blumenthal has investigated. His work has also covered Trump’s memecoin, financial supporters of the president’s crypto ventures, World Liberty Financial and Binance.

Blumenthal previously published a report examining Tether’s financial connections to Iran. He also sought answers about the company’s relationship with Cantor Fitzgerald, its U.S. financial partner.

Ardoino criticized the senator’s investigative approach this week, claiming Blumenthal overlooked important information and shared a report with the media before allowing Tether to review it or respond.

Senate Control Could Shape Future Investigations

Democrats remain in the Senate minority during Trump’s presidency, although their chances of regaining control of the chamber have improved in recent weeks.

A Democratic majority could allow Blumenthal to return as chair of the investigations subcommittee, giving him greater control over its agenda and broader subpoena authority. He has indicated that cryptocurrency oversight would remain among his priorities.

At the time of the report, prediction market Kalshi placed the odds of Democrats retaking the Senate at 69%.