The investigation centers on a reported 5% stake in Tether held by Cantor Fitzgerald, a position the senator estimates has ballooned to $10 billion in value since Donald Trump returned to office. Blumenthal, ranking Democrat on the Senate Permanent Subcommittee on Investigations, has requested that the firm provide documentation by October 23, 2026. The probe specifically targets the flow of funds between the companies and the personal financial dealings of Commerce Secretary Howard Lutnick, the firm’s former CEO.
In section Cryptocurrency
Senator Blumenthal probes Cantor Fitzgerald over $10 billion Tether link
U.S. Senator Richard Blumenthal has demanded that Cantor Fitzgerald disclose extensive financial records detailing its partnership with stablecoin issuer Tether. The inquiry, issued on October 8, seeks to clarify the investment firm's oversight of Tether amid allegations that the USDT token is facilitating illicit financial networks linked to Iran.
Blumenthal’s letter demands transparency regarding the millions of dollars Cantor reportedly earns from managing assets on Tether’s behalf. Furthermore, the inquiry questions how ownership interests were transferred to Lutnick’s sons, Brandon and Kyle, after their father assumed his cabinet post. Beyond internal finances, the senator is pressing for details on Cantor’s sanctions monitoring and due diligence procedures. This follows a September subcommittee report alleging that 84% of 846 digital wallets tied to Iranian interests utilized USDT for transactions. Tether has defended its track record, asserting it assisted in freezing $550 million in Iran-linked assets throughout 2026 and maintains active cooperation with international law enforcement.
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