Senator Richard Blumenthal has requested that Cantor Fitzgerald provide documentation regarding its business partnership with Tether, the issuer of the USDT stablecoin. The inquiry, sent to Cantor chairman Brandon Lutnick, seeks information on how the firm ensures Tether complies with U.S. sanctions and anti-money-laundering regulations.
The senator is investigating potential illicit cryptocurrency usage and self-dealing within the administration. The request, which has a deadline of October 23, asks for records concerning Howard Lutnick’s tenure at Cantor, including communications with regulators and the White House, as well as details on the firm's know-your-customer policies.
Blumenthal’s letter highlights that Cantor Fitzgerald holds a 5% stake in Tether, which he claims has grown in value from $600 million to an estimated $10 billion. Additionally, the senator noted that Howard Lutnick received a $192 million distribution from the firm and has earned over $250 million since President Trump returned to office.
The inquiry also addresses reports of a loan from Tether to a trust for Lutnick’s four children, which reportedly occurred when they acquired their father’s stake in Cantor. Blumenthal is seeking the terms of any legal strategy or loans that would allow for the transfer of asset ownership to the children of the Commerce Secretary.
This request follows a report titled Tethered to Terrorism, which alleged that 84% of crypto wallets sanctioned for links to Iran used USDT. Tether stated it has frozen approximately $550 million in Iran-linked assets this year. The letter does not accuse Cantor of illegal activity but serves as a formal request for information.
