On October 22, 2026, Senator Richard Blumenthal requested records from Tether and consulting firm Nxum Group regarding millions of dollars in payments made while former White House official Bo Hines advised on stablecoin policy. Hines co-founded Nxum and held a one-third stake during his government tenure before becoming head of Tether's U.S. operations. Blumenthal raised concerns over potential federal ethics and lobbying violations, while Tether stated an internal probe found no wrongdoing.
Blumenthal demands records from Tether
- ▪On October 22, 2026, Senator Richard Blumenthal sent letters demanding business records from Tether CEO Paolo Ardoino and Nxum Group regarding the $6.3 million in payments made to Nxum Group
- ▪Senator Richard Blumenthal set a deadline of November 3, 2026 for Tether and consulting firm Nxum Group to turn over contracts, payment details, and communications
Blumenthal's ethics allegations
- ▪Senator Richard Blumenthal stated that Tether's payments to Nxum Group while Bo Hines shaped cryptocurrency policy implicate federal ethics, anticorruption, and lobbying laws
- ▪Senator Richard Blumenthal characterized the Oct. 22, 2026 probe into Tether, Nxum Group, and Bo Hines as an example of self-enrichment and self-dealings with cryptocurrency firms by the Trump administration
Tether payments to Nxum Group
- ▪Consulting firm Nxum Group offered the director of marketing firm Notorious over $300,000 and a share of future Tether payments in exchange for signing a nondisclosure agreement
- ▪In May 2025, Tether agreed to pay consulting firm Nxum Group $415,000 per month, initially routing funds through marketing firm Notorious
- ▪Between May 2025 and April 2026, Tether transferred three installments totaling $7.47 million gross, yielding $6.3 million net to Nxum Group after intermediary fees
Proposed Tether equity stake
- ▪Senator Richard Blumenthal asked Tether and Nxum Group to clarify whether the two companies had discussed Tether acquiring an equity stake in Nxum Group
- ▪Nxum Group represented to prospective investors that stablecoin issuer Tether planned to acquire a 25 percent equity stake in Nxum Group for $56 million
Bo Hines roles and recusal claims
- ▪Bo Hines served as executive director of the President's Council of Advisers on Digital Assets from January 2025 until his resignation on August 9, 2025
- ▪Former White House crypto adviser Bo Hines co-founded consulting firm Nxum Group with his father Todd Hines and retained a one-third ownership stake during his government service
- ▪Tether appointed Bo Hines as a strategic adviser on August 19, 2025, and he later became head of Tether's U.S. operations
- ▪A representative for Nxum Group stated that Bo Hines was uninvolved in Tether's business during his government tenure, recused himself from Nxum matters, and received no Tether payments while in office
GENIUS Act lobbying and policy advocacy
- ▪Consulting firm Nxum Group conducted lobbying activities regarding federal stablecoin legislation without registering with the U.S. House of Representatives or the U.S. Senate
- ▪While serving in the White House, Bo Hines advocated for extending stablecoin compliance deadlines under the GENIUS Act from 18 to 36 months
- ▪Encrypted Signal messages cited in Senator Blumenthal's inquiry indicate Tether CEO Paolo Ardoino instructed Nxum Group to aggressively oppose opponents of the GENIUS Act, the federal stablecoin legislation
- ▪President Donald Trump signed the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act into law on July 18, 2025
White House council leadership
- ▪Following the departures of Bo Hines, Harry Jung, and Patrick Witt, leadership positions at the White House crypto advisory council became vacant by late October 2026
- ▪Patrick Witt departed the White House crypto advisory council after his detail expired, posting on social media platform X that he planned to advance his mission in the private sector
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