U.S. Senate Investigates Tether’s Payments to Bo Hines’ Company

On Thursday, Senator Richard Blumenthal (D-CT), Chair of the U.S. Senate Permanent Subcommittee on Investigations, sent letters to stablecoin issuer Tether and its U.S. subsidiary, as well as to Nxum Group—a consulting firm co-founded by Bo Hines, CEO of Tether’s U.S. subsidiary. The letters demand that Tether clarify the specific arrangements governing its payments to Nxum. According to a report by The Wall Street Journal, Nxum received substantial fees from Tether for consulting services while Bo Hines served as White House Crypto Policy Advisor—a role that included helping shape regulatory policy for stablecoin issuers and other entities. In his letter to Tether CEO Paolo Ardoino, Blumenthal described the relationship among Tether, Nxum, and Bo Hines as “highly unusual.”