Cantor Fitzgerald faces Senate Democrat’s probe over Tether ties
Key Summary
Cantor Fitzgerald is facing scrutiny from a Senate Democrat over its ties to Tether, a stablecoin issuer, amid allegations of potential sanction violations and illicit finance. Senator Richard Blumenthal is demanding records on the firm's partnership with Tether and how much Commerce Secretary Howard Lutnick's family has made from the arrangement.
Cantor Fitzgerald Faced Senate Probe Over Tether Ties
Tether's Shadow Banking Network
Tether's USDT has been linked to Iran's shadow banking network, according to a report by the Democratic investigators. This has raised concerns about potential sanction violations and illicit finance.
Cantor Fitzgerald's Partnership with Tether
Cantor Fitzgerald acquired a 5% stake in Tether in 2024 and reportedly custodies tens of billions of Tether's US Treasury bill reserves. The firm's relationship with Tether began in 2021, when it started acting as a custodian for a portion of the US Treasuries backing the stablecoin issuer's reserves.
Senator Blumenthal's Demands
Senator Richard Blumenthal is demanding records on the firm's partnership with Tether and how much Commerce Secretary Howard Lutnick's family has made from the arrangement. He has also asked whether Cantor requires independent audits of Tether and what steps it has taken to investigate allegations of illicit finance and sanctions evasion.
Tether's Response
Tether responded with a statement saying it has been working with law enforcement for years and has frozen nearly $550 million in Iran-linked USDT this year. The firm has also denied any wrongdoing and stated that it has made untold millions in interest and investments from the stablecoins used in illicit activities.