U.S. Senator Blumenthal Investigates Cantor Fitzgerald’s Relationship with Tether GoldNews reports that on October 8, Richard Blumenthal, Democratic Chief Member of the U.S. Senate Permanent Subcommittee on Investigations (PSI), is investigating the relationship between the stablecoin issuer Tether and Cantor Fitzgerald. He has sent a letter to Cantor Fitzgerald’s CEO, Brandon Lutnick, requesting information about the nature of their relationship, including the company’s banking arrangements, sanctions compliance, and anti-money laundering safeguards. The inquiry focuses on whether USDT has been used in illicit financial activities such as Iran’s shadow banking system or sanctions evasion involving Russia. This follows a PSI staff report released on September 28, which analyzed 846 cryptocurrency wallets sanctioned or targeted for seizure due to links with Iran and its agents, finding that 84% of these wallets transacted exclusively or almost exclusively in USDT. The report also stated that Cantor Fitzgerald holds a 5% equity stake in Tether and controls a significant portion of the company’s over $100 billion in U.S.-based assets. Brandon Lutnick is the son of U.S. Secretary of Commerce Howard Lutnick.
U.S. Senator Blumenthal Investigates Tether and Cantor Fitzgerald Connections
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Summary
Risk-on assets are facing renewed regulatory scrutiny as U.S. Senator Richard Blumenthal investigates ties between Tether and Cantor Fitzgerald. Blumenthal, who leads the Senate’s Permanent Subcommittee on Investigations (PSI), requested detailed information from Cantor Fitzgerald CEO Brandon Lutnick regarding banking practices, sanctions compliance, and anti-money laundering (AML) measures. The inquiry follows a PSI report revealing that 84% of 846 crypto wallets linked to Iran conducted transactions primarily in USDT. Cantor Fitzgerald owns 5% of Tether and holds a significant portion of its more than $100 billion in U.S.-based assets. The investigation could affect market liquidity and crypto markets, particularly if USDT is found to be facilitating illicit financial flows—such as Iran’s shadow banking or Russian sanctions evasion. Lutnick is the son of U.S. Commerce Secretary Howard Lutnick.
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