Tether Faces Senate Questions Over Money Paid to a Firm Owned by Ex White House Crypto Adviser Bo Hines

A Democratic senator is demanding answers from Tether about reported payments to Nxum Group, a consulting business owned by Bo Hines. Hines once led crypto policy at the White House and now runs Tether’s American arm. Senator Richard Blumenthal, the ranking Democrat on the Senate panel that investigates, wrote to both companies on Thursday. A Wall Street Journal report last week said Nxum collected large fees from Tether while Hines was still advising the administration, including on rules for stablecoin issuers that mattered to Tether. Hines started Nxum with his father and another partner, and Blumenthal wants the terms of the deals spelled out.

Why the Senator Sees Ethical and Legal Red Flags

Blumenthal told Tether chief Paolo Ardoino that the arrangement looked highly unusual and suggested the company must have known it was improper to pay an official who helped shape crypto legislation. Tether answered that outside lawyers had already carried out a detailed internal review and found no wrongdoing. Nxum had little political experience, yet it was earlier reported to be the main advertising vendor for a PAC linked to Tether, earning millions.

Staff Moves and What a Democratic Senate Could Mean

Nxum has since hired Harry Jung, another former White House crypto adviser, while the administration’s digital asset office sits vacant after Patrick Witt, who succeeded Hines, left. Blumenthal has also looked into Trump’s memecoin, World Liberty Financial, Binance and Cantor Fitzgerald, and released a report on Tether’s links to Iran. Ardoino says the senator ignored key facts and gave the report to the press before Tether could reply.