Jan. 4, 2027, Deadline for Blumenthal to Obtain Records from Trump-Linked Crypto Firms
Key Facts
U.S. Sen. Richard Blumenthal set Jan. 4, 2027, as the deadline for cryptocurrency firms and entities to provide records and information requested by the Senate Permanent Subcommittee on Investigations. His office said that if the materials are not provided voluntarily by that date, the committee will "consider alternative measures to obtain compliance." The entities that received letters include World Liberty Financial and Fight Fight Fight, as well as Binance and Tether. The list also includes officials at companies that donated to President Donald Trump’s ballroom project. The warning gives the companies time to respond before the committee considers other steps, without constituting a finding of any wrongdoing.
According to CoinDesk, the letters asked officials to begin submitting responses by Nov. 30, 2026, ahead of the later January deadline. The inquiry, led by Blumenthal, concerns illicit cryptocurrency use as well as what his office described as the Trump administration enriching itself and engaging in self-dealing with industry firms. The official statement said the investigation into World Liberty Financial and Trump’s digital currency began in May 2025. His office said the inquiry followed reports that companies linked to Trump may have been enabled to violate ethics rules. These allegations remain under investigation, as the committee seeks records to examine the relevant facts and business ties.
Blumenthal expanded his scrutiny of the Trump family’s crypto ventures this year, holding a public forum on them in July 2026. His office published testimony from investors in Trump’s digital currency who said they had lost thousands of dollars. In October, the senator also sought details of business arrangements related to payments Tether reportedly made to Nxum, co-founded by Bo Hines, according to CoinDesk. Tether said at the time that an outside adviser had conducted an in-depth internal investigation into the allegations and found no evidence of wrongdoing. The inquiry thus combines questions about business relationships and Trump-linked ventures with broader scrutiny of cryptocurrency use.
Another part of Blumenthal’s efforts concerns the use of Tether’s dollar-pegged stablecoin in Iranian financial channels. A report issued by the senator said Tether and its currency had become a "major financial lifeline" within Iran’s shadow banking network. That is a description in his report, not a judicial finding against the company. This issue gives the records request a dimension tied to the risks of cryptocurrency use in transactions linked to sanctions. Blumenthal’s statement also said the inquiry into donations to the White House ballroom project involves major technology companies and other entities that, according to the statement, may be seeking government benefits in exchange for their donations.
The warning coincided with a security incident that Tether said occurred at Binance on Oct. 29, 2026, and that the Federal Bureau of Investigation attributed to North Korea. The company said it froze more than $1.5 billion in USDT within 30 minutes of the attack. The Associated Press cited Binance’s estimate of the incident’s total impact at about $6.3 billion, with about $3 billion frozen on-chain. The agency added that Binance did not explicitly confirm that funds had been stolen and described the incident as a potential security issue. The Associated Press said Circle froze the equivalent of more than $800 million, while Binance temporarily suspended deposits and withdrawals to conduct security checks, freeze funds and work with law enforcement.
Bitcoin fell 3.2% on Thursday evening to below $79,000 after news of the incident, the Associated Press reported. On next steps, Blumenthal said in a weekly statement published on Nov. 6, 2026, that he is the incoming chairman of the Permanent Subcommittee on Investigations. CoinDesk reported that members of Congress will gain subpoena power in January 2027. That comes after the requested start date for responses of Nov. 30 and before the voluntary deadline expires on Jan. 4, 2027. Blumenthal said failure to provide the records could leave the committee with other measures to ensure compliance.