Senator Richard Blumenthal probes Cantor Fitzgerald over Tether ties and compliance
Senator Richard Blumenthal has requested extensive records from Cantor Fitzgerald regarding its custodial relationship, compliance monitoring, and reported multi-billion-dollar stake in stablecoin issuer Tether.
Senator Richard Blumenthal, the ranking member of the Senate Permanent Subcommittee on Investigations, has demanded records from Cantor Fitzgerald detailing its financial and custodial ties to stablecoin issuer Tether. In an October 8 letter addressed to Cantor Chairman Brandon Lutnick and copied to subcommittee chair Senator Ron Johnson, Blumenthal issued 13 numbered requests and gave the financial firm until October 23 to respond.[5][4][1][3][6]
The inquiry highlights Cantor's reported 5% stake in Tether, which the letter notes rose from $600 million to an estimated $10 billion based on reporting by the International Consortium of Investigative Journalists, though Tether has not confirmed the holding. Blumenthal wrote that Cantor collects tens of millions of dollars each year from the assets it custodians for Tether, while former Cantor chairman and current Commerce Secretary Howard Lutnick received over $250 million across the same span, including a $192 million distribution. Blumenthal is also seeking records regarding any Tether loans enabling Lutnick to transfer ownership to his children, as well as Cantor's communications with advisors on President Donald Trump's digital asset council.[5][4]
The request follows a September 28 subcommittee minority report alleging that USDT has become a critical tool for Iran's shadow banking network after staff reviewed 846 wallets flagged by U.S. and Israeli authorities and found 84% transacted almost exclusively in the stablecoin. Blumenthal observed that while Tether claims to operate from El Salvador, the vast majority of its assets are held in the United States under Cantor's custody. In response to illicit finance concerns, Tether previously stated that freezes it supported locked up about $550 million in Iran-linked USDT, with CEO Paolo Ardoino stating the stablecoin does not harbor sanctioned actors.[5][2][4]
Key facts
- Senator Richard Blumenthal sent an inquiry letter dated October 8 to Cantor Fitzgerald Chairman Brandon Lutnick, setting a response deadline of October 23.
- The probe examines Cantor's reported 5% stake in Tether, estimated at $10 billion by the ICIJ, which Tether has not confirmed.
- Blumenthal reported that Cantor earns tens of millions of dollars annually from holding Tether's assets, while Commerce Secretary Howard Lutnick received over $250 million, including a $192 million Cantor distribution.
- The letter contains 13 requests covering anti-money laundering checks, sanctions compliance, family ownership transfers, and communications with presidential crypto advisors dating back to January 1, 2023.
- The inquiry follows a September 28 report finding that 84% of 846 government-targeted illicit wallets transacted exclusively or almost exclusively in USDT.
- Tether reported supporting freezes that locked approximately $550 million in Iran-linked USDT, with CEO Paolo Ardoino stating the firm does not shelter criminal networks.
Sources · 6 sources
- C®
CryptoSavingExpert ®@CryptoSavingExpPost on X ·
Cantor Fitzgerald is facing Senate scrutiny over its ties to Tether, the issuer of $USDT. Sen. Richard Blumenthal is seeking records on a reported 5% stake in Tether, valued at around $10 billion, and compliance checks over alleged Iran-linked activity. The firm has until October 23 to respond.
Open source - CT
Coin TelegraphArticle ·
Cantor Fitzgerald faces Senate Democrat’s questions over Tether ties The letter follows a report by the Democratic investigators last month alleging Tether’s USDT has become a key tool for Iran’s shadow banking network.
Open source - CN
crypto.news@cryptodotnewsPost on X ·
JUST IN: Cantor Fitzgerald faces Senate scrutiny over its ties to $USDT issuer Tether Sen. Richard Blumenthal wants records on Cantor’s reported 5% stake in Tether, estimated at $10B, and its compliance checks over alleged Iran-linked activity, giving the firm until Oct. 23 to respond.
Open source - CO
Cointelegraph@CointelegraphPost on X ·
🔥 BIG: Senator Blumenthal's subcommittee has hit Brandon Lutnick with a letter over Cantor Fitzgerald's Tether ties, days after its report called USDT a lifeline for Iran's shadow banking. https://t.co/jkIKc3kSN8
Open source - UN
UnchainedArticle ·
Blumenthal Asks Cantor Fitzgerald for Records on Its Tether Stake and Custody Role Senator Richard Blumenthal , the ranking member of the Senate Permanent Subcommittee on Investigations, asked Cantor Fitzgerald for records on its relationship with Tether in a letter dated October 8. The letter, addressed to Cantor Chairman Brandon Lutnick , lists 13 numbered requests and asks for responses by October 23 . It was copied to Senator Ron Johnson, the subcommittee’s chair. Since President Donald Trump returned to office, the letter says, Cantor’s 5% stake in Tether has gone from $600 million to an estimated $10 billion . The $10 billion figure is an estimate from reporting by the International Consortium of Investigative Journalists , which noted that Tether has not confirmed the stake. Blumenthal also wrote that Cantor collects “tens of millions of dollars” a year from the assets it holds for Tether, and that Howard Lutnick, Cantor’s former chairman and now Commerce Secretary, has made more than $250 million over the same period, including a $192 million distribution from Cantor. Get Unchained’s crypto news in your inbox with the free Unchained Daily newsletter . What the Letter Asks Blumenthal asks for Cantor’s annual revenue from the Tether partnership since it began, along with the annual amount the Lutnick family has made from it. He also asks whether Cantor requires regular independent audits of Tether and what measures it uses to monitor Tether’s compliance with sanctions and anti-money-laundering rules. Other requests cover Cantor’s custodial relationship with Tether and its ownership stake. One seeks records on the terms of any loan or other provision from Tether to Howard Lutnick or his family “that enabled him to transfer his ownership stake to his children.” Another asks what Cantor has done to investigate allegations that Tether’s stablecoin was used to launder money, naming Iran’s shadow banking network and Russian sanctions evasion as examples. A final request asks for Cantor’s communications with anyone on the council that advises President Trump on digital assets. Unless otherwise specified, the requests cover January 1, 2023, to the present. Iran Report Backdrop The letter follows a September 28 subcommittee minority report on Tether and Iranian shadow banking. Blumenthal’s staff reviewed 846 wallets targeted by U.S. and Israeli authorities and found that 84% transacted exclusively or nearly exclusively in USDT, calling the findings preliminary. “While Tether claims to operate out of El Salvador, the vast majority of its assets reside in the United States under your custodianship,” Blumenthal wrote to Lutnick in the letter, adding that the partnership “will provide important insights into the inner workings of this industry.” Tether said in a September 28 release that freezes it supported this year had locked up about $550 million in Iran-linked USDT. Tether CEO Paolo Ardoino said the stablecoin does not offer refuge to sanctioned parties or criminal networks. Related Listen: How OpenAI’s Math Dump Has Crypto Rethinking Its Cryptography: Uneasy Money The post Blumenthal Asks Cantor Fitzgerald for Records on Its Tether Stake and Custody Role appeared first on Unchained .
Open source - CO
CoindeskArticle ·
Top Democrat among Senate investigators probes ties between Cantor Fitzgerald, Tether As Democrats steadily rise in their potential to take back a Senate majority, Senator Richard Blumenthal is digging into Tether's U.S. financial partnership.
Open source