Cantor Fitzgerald faces Senate Democrat’s probe over Tether ties
The letter follows a report by the Democratic investigators last month alleging Tether’s USDT has become a key tool for Iran’s shadow banking network.
A Senate Democrat, Senator Richard Blumenthal, has launched a probe into Cantor Fitzgerald, an investment bank, over its alleged ties to Tether, a stablecoin issuer. The Democratic investigators claimed in a report last month that Tether's USDT has become a key instrument for Iran's shadow banking network. Blumenthal, the ranking Democrat on the Senate's Permanent Subcommittee on Investigations, requested records on Cantor Fitzgerald's partnership with Tether and details of the financial gains made by the firm and its chairman, Howard Lutnick, from the arrangement.
Blumenthal accused Cantor Fitzgerald of putting America's national security at risk by its lucrative business arrangements with Tether. The inquiry comes after the stablecoin issuer's USDT has been identified as a tool for Iran's shadow banking network. Cantor Fitzgerald acquired a 5% stake in Tether in 2024 and reportedly custodies tens of billions of Tether's US Treasury bill reserves.
Blumenthal highlighted that Cantor's stake in Tether's value has increased from $600 million to $10 billion since Trump's return to office, and that Howard Lutnick received over $250 million in that period, including a $192 million distribution from Cantor. Tether responded by stating it has frozen nearly $550 million in Iran-linked USDT this year and has been working with law enforcement for years. The investigation by Blumenthal seeks Cantor's response by October 23.
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