Senator Blumenthal presses Cantor Fitzgerald on Tether ties, sets Oct. 23 deadline

Sen. Richard Blumenthal, the top Democrat on the Senate Permanent Subcommittee on Investigations (PSI), on Oct. 8 sent a letter to Cantor Fitzgerald, the investment bank that holds Tether's U.S. assets, demanding details of the firm's relationship with the stablecoin issuer. The letter, addressed to Cantor Chairman Brandon Lutnick, sets an Oct. 23 deadline for responses to 13 questions and document requests. Commerce Secretary Howard Lutnick ran Cantor as chairman and CEO until his confirmation in February 2025, and his children now run the firm.

An Oct. 23 deadline and a list of 13 requests

Blumenthal asked Cantor to preserve all documents, records and communications related to Tether. Unless otherwise specified, the requests cover Jan. 1, 2023, to the present. The questions range from how the relationship began to how Cantor checks sanctions compliance. Key items include:

• When and how Cantor first entered into a business partnership with Tether, and how much Cantor and the Lutnick family have earned from it each year since
• Cantor's custodial relationship with Tether and related audit records, and whether Cantor requires independent audits of Tether
• How Cantor monitors Tether's compliance with U.S. Treasury Office of Foreign Assets Control (OFAC) sanctions and anti-money laundering rules, and under what circumstances it would end the relationship
• What steps Cantor has taken to investigate allegations that Tether's stablecoin was used in Iran's shadow banking network and for Russia sanctions evasion

The letter also seeks records on the terms under which Howard Lutnick gave up his stake in Cantor, and whether Tether provided a loan or other arrangement to the Lutnick family in that process. It requests Cantor's communications with members of the president's digital assets advisory council as well. Republican Sen. Ron Johnson, the subcommittee's chair, was copied on the letter.

A 5% stake that grew from $600 million to $10 billion

Blumenthal wrote that Cantor has profited heavily from its ties to Tether. "Since the President's return to office, Cantor Fitzgerald's five percent stake in Tether has increased in value from $600 million to an estimated $10 billion," he wrote, adding that Cantor separately collects tens of millions of dollars every year from the assets it holds for Tether. Citing media reports, he also said Howard Lutnick made more than $250 million over the same period, including $192 million from Cantor.

"While Tether claims to operate out of El Salvador, the vast majority of its assets reside in the United States under your custodianship," Blumenthal wrote, explaining the letter. "As Congress considers how to best regulate digital assets, your partnership with Tether will provide important insights into the inner workings of this industry." Cantor and Tether did not immediately respond to requests for comment, according to CoinDesk.

An 846-wallet report, and Tether's freeze figures the same day

The letter follows "Tethered to Terrorism," a report Blumenthal released on Sept. 28 as the subcommittee's ranking member. Tether published its Iran-related freeze figures the same day. Here is how their accounts differ:

Tether's statement did not directly mention the subcommittee's report.

Upbit's USDT market traded 132 billion won in a day

As of 10:30 a.m. KST on Oct. 9, USDT traded at 1,377 won on Upbit's Korean won market, with about 132 billion won in 24-hour trading value. On Bithumb at the same time, it traded at 1,375 won, with about 134.3 billion won in 24-hour value. The Upbit price was about 2.6% above the won-dollar exchange rate of 1,342 won at the time.

CoinDesk reported that Blumenthal and other Democrats have limited power as members of the minority party, and that if Democrats win a majority they could lead committees with subpoena power to compel documents and testimony.