Blumenthal Seeks Cantor Records on Tether Relationship

Sen. Richard Blumenthal, the ranking Democrat on the Senate Permanent Subcommittee on Investigations, asked Cantor Fitzgerald CEO Brandon Lutnick for records on the firm’s relationship with Tether. The Oct. 8 letter sets an Oct. 23 deadline for a response.

Blumenthal asked Cantor to describe how it monitors banking and sanctions risks linked to Tether. He also requested records on any investigations into allegations that USDT, Tether’s dollar-linked cryptocurrency, was used in illicit finance, money laundering, Iran’s shadow banking network or efforts to evade sanctions against Russia.

The letter seeks communications involving Howard Lutnick, who left Cantor after becoming U.S. commerce secretary under President Donald Trump. It also asks for details about his departure and divestiture from Cantor, including whether Tether provided a loan or other financing to Lutnick or his family to help transfer ownership of the company to his children.

“Just as Tether has made untold millions in interest and investments from the stablecoins used in these illicit activities, so has Cantor Fitzgerald profited from its relationship with Tether,” Blumenthal wrote in the letter.

Blumenthal asked whether Cantor requires independent audits of Tether, has considered ending its relationship with the company or has taken additional steps to examine USDT’s use in sanctions-related transactions.

Cantor began serving as custodian for part of the U.S. Treasury securities backing Tether’s reserves in 2021. In 2024, Cantor acquired rights to a 5% stake in Tether. The firm is also reported to custody tens of billions of dollars in Tether’s U.S. Treasury bill reserves.

The request follows a Sept. 28 report by Democratic Senate investigators that described USDT as a significant tool in Iran’s shadow banking network. The report called on the Treasury and Justice departments to investigate potential sanctions violations. Blumenthal’s letter shifts the focus to Cantor’s role as a U.S. custodian and equity partner of Tether.

Tether has said it works with law enforcement and has frozen nearly $550 million in USDT linked to Iran in 2026. Cantor Fitzgerald and Tether had not immediately responded to requests for comment as of Oct. 9.

The letter also cites claims that the estimated value of Cantor’s Tether stake rose from $600 million to $10 billion after Trump returned to office. It says Howard Lutnick received more than $250 million during that period, including a $192 million distribution from Cantor. The letter presents those figures as allegations, and they have not been independently verified.