Blumenthal Seeks Records on Tether’s $6 Million Payments to Nxum
Key Facts
On October 22, 2026, the office of U.S. Sen. Richard Blumenthal said it had requested answers and records from Tether and sent a similar request to consulting and investment firm Nxum. The two letters focus on an agreement Tether made with the company co-founded by Bo Hines, and payments that passed between the parties. Blumenthal, the top Democrat on the Senate Permanent Subcommittee on Investigations, sought information on contracts, payments, communications and political influence related to Nxum and Hines. The move is part of a broader investigation he is leading into illicit cryptocurrency use and what he described as self-enrichment and conflicts of interest in the Trump administration. The letter described concerns that warranted a request for information; it did not present a finding of wrongdoing.
According to Blumenthal’s letter, which cited a Wall Street Journal report, Tether agreed in May 2025 to have Nxum develop a branding and public affairs strategy. The agreement called for payments of $415,000 a month, the letter said, while more than $6 million flowed from Tether to Nxum. Cointelegraph reported that the company received $6.3 million under the reported deal. The letter seeks records of the agreement and payments, including transfer dates, payment methods and cryptocurrency wallets, to trace the flow of funds. The correspondence thus puts the monthly payment and reported total payments at the center of its document request.
Blumenthal’s letter says Hines retained a one-third stake in Nxum while working at the White House, and says the payments passed through marketing firm Notorious before reaching Nxum. According to the letter, Tether routed the contract and cryptocurrency payments through Notorious, which then transferred them to the consulting firm. The letter adds that contracting and payments became direct between Tether and Nxum after Hines left the White House. The records request makes the payment method and intermediaries part of the questions directed to the two companies. Blumenthal also sought information on whether the companies had discussed Tether acquiring a stake in Nxum.
Blumenthal’s letter cited the Wall Street Journal as saying Nxum sought additional investment, and included an allegation that Tether planned to buy a 25% stake in it for $56 million. The letter presented this as an allegation in a news report and asked the companies to clarify whether they had discussed the deal; the correspondence does not establish that a purchase agreement exists. The question arises in the context of the reported relationship between Tether and Nxum, and Hines’ retention of a stake in the company while in government. The letter describes the matter as one of the topics requiring records and information from both parties. The committee’s request is aimed at uncovering what was discussed and documented, not declaring that the stake deal went through.
Hines’ role in the path to the GENIUS Act provides further background. Cointelegraph reported that the law was signed in July 2025 and is scheduled to take effect in January 2027 after government agencies issue their rules. The publication said Hines joined Tether as a strategic adviser in August 2025, then became head of its U.S. unit the following month. The correspondence links the timing of the reported May 2025 agreement with Hines’ White House service and retention of his Nxum stake, and his subsequent move to Tether. The law’s upcoming implementation makes stablecoin regulation part of the story’s political and regulatory context. These facts, on their own, do not constitute a finding of wrongdoing in the agreement or Hines’ move between roles.
Blumenthal’s letter places the new request within his committee’s broader interest in cryptocurrency use in illicit activity. In a previous report, the committee’s Democratic staff said it analyzed transaction data from 846 wallets that had been sanctioned or targeted for seizure over links to Iran and its regional proxies. The report said 84% of those wallets transacted exclusively or almost exclusively in USDT. The figure applies to the report’s sample, not to Tether’s total transactions. The earlier investigation explains why Blumenthal included Tether in a broader review, while the direct subject of the Nxum request remains separate: contracts, payments and potential interests.
The letter set November 6, 2026, as the deadline for submitting the requested responses to the committee. The requested materials include records of contracts, payments, communications and political influence, along with details of transfers, their methods and associated cryptocurrency wallets. It also seeks clarification on any discussion of a potential Tether stake in Nxum. The responses are expected to allow the committee to examine the account of the payments, the financial intermediary and the timing of the relationship between the company and Hines. Until then, the allegations in the letter and press reports remain the subject of an information request, not a proven investigative finding.