US Senate Probes Tether, Ex-White House Aide Over Conflict-of-Interest Claims

Hines accused of receiving Tether payments through family company while in office

Tether, the issuer of the world's largest stablecoin, is under investigation by the U.S. Senate over alleged conflicts of interest involving a former White House crypto aide. The inquiry centers on claims that Tether paid money to a company co-owned by Beau Hines while he was serving at the White House.

CoinDesk reported on Oct. 22 that Democratic Senator Richard Blumenthal sent letters to Tether and consulting firm Nxum Group demanding an explanation of their business relationship and the circumstances of the payments.

The probe was prompted by allegations of ties between Nxum and Hines. Hines is accused of having Nxum receive large consulting payments from Tether while he was advising the Trump administration on crypto policy. Nxum was founded by Hines, his father and another business partner.

At the White House, Hines worked on policies closely tied to Tether's business, including regulation of stablecoin issuers. He later went on to lead Tether's U.S. business.

In a letter to Tether Chief Executive Officer Paolo Ardoino, Blumenthal wrote that the terms and nature of the transactions raise serious ethical and legal concerns. He specifically questioned financial ties to an official directly involved in crypto legislation important to Tether.

Blumenthal has been expanding his scrutiny of Tether. Last month, he released a report on links between USDT and Iran's sanctions-evasion financial networks. This month, he also asked Cantor Fitzgerald, Tether's U.S. financial partner, to provide materials on its relationship with the company.