US Senator Questions Tether Over Reported Payments Linked To Former Crypto Adviser

TL;DR: Senator Richard Blumenthal has demanded records from Tether and consultancy Nxum over reported payments and potential ethics concerns; the inquiry is not a finding of wrongdoing. Tether is facing questions from a senior U.S. senator over reported payments to a consultancy connected to a former White House crypto-policy official. The concern is about potential conflicts of interest in policymaking, rather than the reserve backing or technical operation of USDT. On Thursday, Senator Richard Blumenthal, the ranking member of the Senate Permanent Subcommittee on Investigations, said he had sent letters seeking information from Tether and Nxum Group. The inquiry follows reporting that payments flowed to a firm associated with Bo Hines, who previously led the White House Council of Advisers for Digital Assets. What the senator is seeking Blumenthal's public letter cites Wall Street Journal reporting alleging that more than $6 million was paid to Nxum under an arrangement involving strategic communications and public affairs. The senator raises questions about the firm's ownership, lobbying contacts and the timing of policy discussions during Hines's government service. Those alleg...