Tether said an earlier internal review by outside legal counsel found no evidence of wrongdoing, following claims that millions of dollars were paid to a company founded by former White House crypto adviser Bo Hines.
A Tether spokesperson told The Block that the company was reviewing a letter from U.S. Senator Richard Blumenthal requesting records. The company said it was aware of the allegations underlying the letter and that outside legal counsel had previously conducted a thorough review of the matter.
The statement that no evidence of wrongdoing was found reflects Tether’s account of its own internal review. The company responded after the senator requested records concerning its business relationships with consulting firm Nxum and Hines.
What Is the Payment Allegation Against Tether?
A report published by The Wall Street Journal last week alleged that Tether paid millions of dollars to Nxum, founded by Bo Hines and his father. According to the report, the business relationship with the company was established weeks after Hines began his role as a White House crypto adviser, while discussions over stablecoin legislation were underway.
In letters sent to Tether and Hines, Blumenthal argued that the relationship raised concerns under ethics rules, anti-corruption laws and lobbying regulations. The senator also sent a separate letter to Nxum.
Following earlier reports of the alleged payments and the request for records, the latest development in the matter was Tether’s statement that it was reviewing the letter and that its earlier internal review had found no evidence of wrongdoing.
Why Are Roles in the Stablecoin Law in the Spotlight?
Hines played a key role in the passage of the GENIUS Act, which established the first federal regulatory framework for stablecoins in the United States. Tether was among the companies that supported the law and, within this framework, launched its U.S.-based stablecoin, USAT.
The senator’s questions focus on the consulting relationship and the fact that the alleged payments coincided with the legislative process. In its response, Tether points to the findings of the earlier review conducted by outside legal counsel.
Not investment advice.