Senator Blumenthal Seeks Details on Tether’s Controversial $6.3M Deal Involving Former White House Crypto Advisor

In a letter sent to Ardoino on Thursday, Blumenthal, a Connecticut senator, informed him that the Senate Permanent Subcommittee on Investigations had demanded records and details about contracts, payments, communications, and lobbying activities between Tether and Nxum. Blumenthal described the inquiry into Nxum, Tether, and Hines as part of a broader investigation into the Trump administration’s alleged self-enrichment and dealings with crypto companies.

Blumenthal detailed that although Hines did not relinquish his one-third ownership stake in Nxum, he maintained close communications through encrypted messaging apps with Nxum personnel. Together, they coordinated lobbying efforts and pressured members of Congress who opposed or sought amendments to proposed stablecoin legislation. The senator also cited reports indicating that Tether was directly orchestrating Nxum’s lobbying for the GENIUS Act—legislation targeting stablecoin regulation—with CEO Ardoino allegedly instructing Nxum to “obliterate” opposition to the bill.

The senator further stated that the unusual nature and terms of Tether’s business relationship with Nxum and Hines raise serious ethical and legal questions. He suggested that Tether was likely aware of the impropriety and potential illegality of making payments to a current White House official who played a key role in crafting cryptocurrency legislation that affected Tether’s interests.

Bo Hines served as executive director on the President’s Council of Advisers on Digital Assets from January through August 2025 before leaving the White House to become a strategic adviser at Tether. He later advanced to CEO of Tether US. Another former Trump administration crypto adviser, Harry Jung, departed his government role in July 2026 and joined Nxum as managing director the following month.

Donald Trump, members of his family, and others in his administration continue to face scrutiny amid allegations that they financially benefit from crypto-related policies and laws under their influence. Trump reportedly reported $1.4 billion in income from cryptocurrency-related investments in 2025.

Cointelegraph reached out to Tether for comment on both the Senate investigation and the Wall Street Journal report but had not received any response at the time of publication.

Though Blumenthal has limited authority as the senior Democrat on the Senate Permanent Subcommittee on Investigations, the upcoming 2026 midterm elections could change control of Congress. A shift could empower Blumenthal and fellow Democrats to intensify probes into Trump’s and his administration’s connections with the crypto sector, including potential conflicts of interest.

As of the previous Friday, prediction markets such as Kalshi and Polymarket indicated strong odds favoring Democrats regaining control of both the House and Senate in 2027. Kalshi’s event contracts gave Democrats a 92% chance for the House and 68% for the Senate. The U.S. midterm elections are scheduled for November 3, 2026.

The investigation highlights critical concerns about transparency and ethics where government officials involved in cryptocurrency legislation may have financial ties that influence policy decisions, with significant implications for regulatory oversight and public trust.

Understanding these complex relationships is vital as they may affect legislative processes and the integrity of governance in the rapidly evolving crypto market space.

With midterm elections potentially shifting congressional control, the outcomes of these inquiries could have lasting effects on how the cryptocurrency industry is regulated in the United States.