U.S. senator seeks Cantor Fitzgerald's Tether records, questions Lutnick family gains

Cantor Fitzgerald, the custodian of Tether's reserve assets, is facing fresh scrutiny from the U.S. Senate over its ties to the issuer of USDT, the world's largest stablecoin. Sen. Richard Blumenthal, the Democratic ranking member of the Senate Permanent Subcommittee on Investigations, sent a letter Thursday to Cantor's chairman and to Brandon Lutnick, the son of Commerce Secretary Howard Lutnick. The letter contains 13 questions and asks the firm to provide information on its relationship with Tether, how it checks for compliance with U.S. sanctions and anti-money-laundering rules, and how much money the Lutnick family has made from the arrangement. It is a request for information rather than a subpoena, and it seeks a response by Oct. 23. Blumenthal said it was "disturbing" that a "lucrative business arrangement" with Tether could come "at the expense of U.S. national security." He described the minority investigation as focused on "the illicit use of cryptocurrencies, as well as selfdealing and improper transfers of benefits between the Trump administration and cryptocurrency companies." The letter does not accuse Cantor of violating specific laws and does not present findings of misconduct. USDT is pegged to the U.S. dollar and is widely used across crypto markets. Cantor serves as Tether's custodian, safeguarding cash and other assets that back USDT in circulation. Blumenthal wrote that while Tether says it operates in El Salvador, "the vast majority of its assets are held within the United States and custodied by your company." The senator pointed to the depth of the relationship between the two firms and to Cantor's connections to the Trump administration. He wrote that since President Trump returned to the White House, Lutnick has earned more than $2.5 billion, including $1.92 billion in dividends from Cantor. Over the same period, Cantor's 5% stake in Tether rose in value from $600 million to about $10 billion, he said. Blumenthal also stated that Cantor collects tens of millions of dollars annually in fees tied to holding Tether's assets. Howard Lutnick led Cantor until his Senate-confirmed appointment as Commerce secretary in February 2025. The firm is now chaired by his son Brandon. Blumenthal asked for details of any loans or legal arrangements related to how Lutnick transferred asset ownership to his children, referencing a previously reported Tether loan to a trust for Lutnick's four children. The amount was undisclosed and was reported to have occurred around the time the children bought out their father's shares in Cantor. Sens. Elizabeth Warren and Ron Wyden questioned Lutnick and Tether about the matter in April. The Senate inquiry follows a report released by Democratic staff on the subcommittee 10 days earlier titled "Tether Tied to Terrorism." The report said 84% of 846 cryptocurrency wallets sanctioned or targeted for seizure due to alleged involvement with Iran and its proxies used only or almost exclusively USDT. It also broke out the underlying lists: 87% of 757 wallets designated by Israel's CounterTerrorism Finance Unit primarily used USDT, compared with 57% of 101 wallets designated by the U.S. Treasury's Office of Foreign Assets Control. Tether has the ability to freeze wallets. The company said the same day that it has frozen about $550 million in funds linked to Iran this year, including $344 million in April and more than $130 million in July. The statement did not directly address the report. Blumenthal also requested access to Howard Lutnick's personal records related to Tether during his time at Cantor, including "any discussions with the White House or state and federal regulatory agencies about Tether, as well as lobbying activities conducted on behalf of Tether." Other questions cover Cantor's customer identity verification policies, whether the firm considered ending its relationship with Tether, and communications with the President's Digital Asset Advisory Committee. The letter asks Cantor to respond by Oct. 23 and to preserve all documents, records, and communications related to its relationship with Tether during the period in question.