Senator Richard Blumenthal, a ranking Democrat on the Senate Permanent Subcommittee on Investigations, has launched a probe into Cantor Fitzgerald regarding its partnership with Tether. The inquiry focuses on how the investment bank monitors Tether’s compliance with sanctions and banking laws.
The investigation follows allegations that USDT is utilized by Iran’s shadow banking network. Blumenthal has requested records of all communications involving Commerce Secretary Howard Lutnick regarding Tether, as well as details on the firm's oversight of the stablecoin issuer.
Cantor Fitzgerald acquired a 5% stake in Tether in 2024 and serves as a custodian for tens of billions of dollars in Tether’s US Treasury reserves. The partnership between the two entities began in 2021 when Cantor started managing a portion of the reserves.
Blumenthal claims the estimated value of Cantor’s stake in Tether rose from $600 million to $10 billion since Donald Trump returned to office. He also alleges that Howard Lutnick received over $250 million during this period, including a $192 million distribution.
The senator is seeking information on the terms of Howard Lutnick’s divestiture from the firm and any loans provided by Tether to the Lutnick family. Tether stated it has frozen nearly $550 million in Iran-linked USDT this year and cooperates with law enforcement.
