Senate Democrat Launches Investigation Into Cantor Fitzgerald's Tether Relationship
Richard Blumenthal, a Senate Democrat, is calling for comprehensive documentation regarding Cantor Fitzgerald's business relationship with Tether, compliance monitoring procedures, and profits generated for the family of Howard Lutnick.
The investment banking firm Cantor Fitzgerald is now under investigation by a Democratic senator regarding its business connections with Tether, as Senator Richard Blumenthal requests comprehensive documentation about the company's collaboration with the stablecoin provider and seeks information on the financial gains Howard Lutnick's family has received through this business relationship.
Through a formal letter issued Thursday, Blumenthal, who serves as the top-ranking Democrat on the Senate's Permanent Subcommittee on Investigations, requested that Cantor chairman Brandon Lutnick provide clarification on the firm's methods for ensuring Tether's adherence to banking regulations and sanctions laws, as well as provide all correspondence related to Howard Lutnick concerning Tether, including communications that occurred following his departure from Cantor.
"Disturbingly, Cantor Fitzgerald's lucrative business arrangements with Tether come at the expense of America's national security," Blumenthal wrote.
This investigation shines a spotlight on Cantor's profitable alliance with Tether. In 2024, Cantor Fitzgerald obtained the rights to a 5% ownership position in Tether and is reported to serve as custodian for tens of billions worth of Tether's holdings in US Treasury bills. According to Blumenthal's claims, Cantor's ownership stake in Tether has grown in estimated worth from $600 million to $10 billion following Trump's return to the White House, with Howard Lutnick personally receiving over $250 million during this timeframe, which includes a $192 million payout from Cantor Fitzgerald.
This letter arrives on the heels of a report published last month by Democratic investigators from the Senate Permanent Subcommittee on Investigations that claimed Tether's USDt (USDT) has evolved into an essential instrument for Iran's shadow banking operations.
Blumenthal urged the US Treasury and Justice Department to launch an investigation into possible sanctions violations. In response, Tether issued a statement asserting that it has maintained cooperation with law enforcement agencies for multiple years and has successfully frozen approximately $550 million in USDT with connections to Iran during the current year.
"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 his latest letter to Cantor.
Cointelegraph reached out to Cantor Fitzgerald and Tether but did not receive an immediate response.
Cantor-Tether ties date back to 2021
The business association between Cantor and Tether traces its origins to 2021, the year when the firm began serving in a custodial capacity for a segment of the US Treasuries that support the stablecoin issuer's reserve holdings.
During this time period, Howard Lutnick led Cantor in his dual role as chairman and CEO, and he played a key role in brokering the firm's equity investment in Tether during April 2024.
Following his Senate confirmation as commerce secretary in February 2025, Lutnick resigned from his position at Cantor. Subsequently, the firm appointed his son Brandon to the role of chairman and elevated his other son to the position of vice chairman.
In addition to requesting earnings and compliance documentation, Blumenthal is pursuing information about the conditions of Howard Lutnick's divestment from Cantor and specifics regarding any loan or financing arrangement that Tether may have extended to Lutnick or members of his family to enable the ownership transfer to his children.
The senator has additionally inquired whether Cantor mandates independent audits of Tether, whether the firm has at any point considered ending the partnership, and what measures it has implemented to examine allegations related to illicit finance and sanctions evasion.
Blumenthal has asked Cantor to respond by Oct. 23.