Summary
- Senator Richard Blumenthal has issued a 13-item request for records from Cantor Fitzgerald regarding its business dealings with Tether, with a deadline for responses set for October 23.
- His letter claims that the firm’s 5% stake in Tether has surged from $600 million to approximately $10 billion since Donald Trump's return to office, although it does not specifically accuse Cantor of any legal violations.
- Blumenthal seeks information on any Tether loan that facilitated the transfer of Howard Lutnick's stake in Cantor to his children.
Senator Richard Blumenthal is urging Cantor Fitzgerald, a prominent Wall Street firm, to provide documentation related to its partnership with Tether, the issuer of USDT, which is recognized as the largest stablecoin globally, pegged to the U.S. dollar.
He also inquires about the financial gains made by the family of Commerce Secretary Howard Lutnick from this association, as revealed in a letter sent on Thursday.
Myriad: Predict the outcome of the midterm elections.In his correspondence, Senator Blumenthal expressed concern, stating, “Disturbingly, Cantor Fitzgerald’s lucrative business arrangements with Tether come at the expense of America’s national security.”
The letter was directed to Brandon Lutnick, Cantor’s chairman and Howard Lutnick’s son, and serves as a request for information rather than a subpoena, with an emphasis on the subcommittee's investigation into “the illicit use of cryptocurrencies and the Trump Administration’s self-enrichment and self-dealings with cryptocurrency firms.”
While the letter does not accuse Cantor of any wrongdoing, it raises questions about how the firm ensures that Tether complies with U.S. sanctions and anti-money-laundering regulations. The claims regarding Tether and the Lutnick family's financial situation are based on press reports and prior investigations by Blumenthal’s team.
“Just as Tether has made untold millions in interest and investments from the stablecoins used in these illicit activities, so has Cantor Fitzgerald profited from its relationship with Tether,” Blumenthal noted.
Blumenthal highlighted that Lutnick has earned over $250 million since Trump took office, including a $192 million payout from Cantor. He also mentioned that Cantor's 5% stake in Tether has escalated from $600 million to an estimated $10 billion, in addition to the annual income of tens of millions from managing Tether’s assets.
Cantor serves as Tether’s custodian, responsible for safeguarding the reserves that back the USDT in circulation. Blumenthal pointed out that although Tether claims to operate from El Salvador, the majority of its assets are held in the United States under Cantor's custodianship.
Howard Lutnick led Cantor until he was confirmed as Commerce Secretary in February 2025, after which his son Brandon took over as chairman. The senator is also seeking details about any loan or legal strategy that enabled Lutnick to pass ownership of assets to his children.
This request aligns with reports of a loan from Tether to a trust for Lutnick’s four children, made around the time they acquired their father's stake in Cantor. Senators Elizabeth Warren and Ron Wyden had previously inquired about this in April.
When assets are transferred to a trust, the individuals under scrutiny do not retain legal ownership of those assets.
The letter comes just ten days after the subcommittee's Democratic staff published a report titled “Tethered to Terrorism,” which revealed that 84% of 846 crypto wallets linked to Iran and its affiliates exclusively or predominantly utilized USDT.
This figure varies across two lists: 87% of the 757 wallets identified by Israel’s counter-terror finance bureau primarily transacted in USDT, compared to 57% of the 101 wallets designated by the Treasury’s Office of Foreign Assets Control (OFAC).
Tether, which can freeze wallets to prevent movement of tokens, reported approximately $550 million in asset freezes linked to Iran this year, including $344 million in April and over $130 million in July. The company did not directly address the findings of the report.
Blumenthal is also requesting Howard Lutnick’s records related to Tether from his tenure at Cantor, including any discussions about Tether with the White House or state and federal regulators, as well as any lobbying efforts on Tether's behalf.
Additional inquiries pertain to Cantor’s know-your-customer policies, considerations regarding the termination of their partnership, and communications with the President’s Council of Advisors on Digital Assets.
Cantor has until October 23 to provide a response, and the letter instructs the firm to preserve all documents, records, and communications related to its dealings with Tether in the interim.