U.S. Senator Richard Blumenthal, the ranking Democrat on the Senate Permanent Subcommittee on Investigations, has demanded records from stablecoin issuer Tether and consulting firm Nxum Group concerning multimillion-dollar payments made while Bo Hines served as a senior White House crypto policy official. The letters, dated October 22, 2026, seek contracts, payment details, communications and lobbying materials by a November 3 deadline.

The inquiry follows reporting that Tether entered an arrangement in May 2025 under which it agreed to pay Nxum $415,000 per month for strategic brand and public affairs work, with total transfers exceeding $6 million. Hines, a co-founder of Nxum who retained a one-third ownership stake, held the post of executive director of the President’s Council of Advisers on Digital Assets from January to August 2025. After leaving government, he joined Tether as a strategic adviser and later assumed leadership of the company’s U.S. operations.

Focus on Timing and Policy Role

Blumenthal’s letters state that the terms and nature of the relationship raise ethical and legal concerns. He noted that Hines participated in developing stablecoin policies, including work related to the GENIUS Act, at the same time his firm received payments from a major stablecoin issuer affected by that legislation. The senator requested a full breakdown of every payment from Tether to Nxum, including methods and any cryptocurrency wallet addresses used, along with all Tether records involving Hines from January 20 to August 9, 2025.

According to the letters, Hines did not divest his stake in Nxum during his White House tenure. The correspondence also references reported encrypted messages indicating coordination on lobbying efforts around the GENIUS Act. Blumenthal wrote that those messages reportedly show Tether directing Nxum’s activities, with the company’s chief executive urging the firm to aggressively counter the legislation’s opponents.

The letters further inquire whether Tether and Nxum ever discussed the stablecoin issuer acquiring an equity stake in the consultancy. Reporting cited by the senator indicated that Nxum, while seeking investors, stated Tether intended to purchase a 25 percent stake for $56 million. Nxum did not register its lobbying activities with the House or Senate as required under federal law, according to the documents.

Company Response and Broader Scrutiny

Tether stated that it is aware of the allegations forming the basis of the senator’s letter. External counsel previously conducted an in-depth internal investigation into the matter and found no evidence of wrongdoing. Nxum has maintained that Hines was not involved in Tether-related business during his government service.

Blumenthal has pursued multiple lines of inquiry involving Tether in recent months. These include examinations of the company’s financial connections and its relationship with U.S. financial partner Cantor Fitzgerald. The current request for records from Tether and Nxum forms part of his wider examination of ties between cryptocurrency firms and individuals connected to the Trump administration’s crypto policy efforts.

Hines left the White House in August 2025 and was subsequently hired by Tether. Another former White House crypto adviser, Harry Jung, later joined Nxum as a managing director. The GENIUS Act, which established a federal framework for stablecoin issuance, became law in July 2025. Tether has said its planned U.S. dollar-backed stablecoin was designed to comply with that statute.

The letters do not constitute findings of any violation. They request documentary evidence and responses from the companies involved. Any further steps by the subcommittee would depend on the materials submitted and subsequent review.