A Senate Democrat Wants Cantor Fitzgerald to Explain How the Lutnick Family Profited From Its Ties to Tether

Cantor Fitzgerald looks after much of the money behind the world's biggest stablecoin, and a top Senate Democrat wants to know how much the Commerce Secretary's family has made from it. On 8 October, Sen. Richard Blumenthal sent the firm a letter with 13 numbered requests about its ties to Tether, with answers due 23 October.

The letter went to Cantor chairman Brandon Lutnick, son of Commerce Secretary Howard Lutnick. Blumenthal is the ranking Democrat on the Senate Permanent Subcommittee on Investigations, and he copied its Republican chair, Ron Johnson. The letter makes allegations and asks questions. It does not bring charges.

A family business with a stablecoin attached

Cantor has held part of the Treasuries backing USDT since 2021. Howard Lutnick, who ran the firm, negotiated its investment in Tether in April 2024, when Cantor acquired rights to a 5% stake, Cointelegraph reports. He stepped down after his Senate confirmation in February 2025, and the firm named his sons chairman and vice chairman.

The letter says that since Trump returned to office, the stake has grown from $600 million to an estimated $10 billion. That figure is an ICIJ estimate Tether has not confirmed, Unchained notes. Blumenthal also says Cantor collects "tens of millions of dollars" a year from the assets it holds for Tether, and that Howard Lutnick made more than $250 million over the period, including a $192 million distribution from Cantor.

"While Tether claims to operate out of El Salvador, the vast majority of its assets reside in the United States under your custodianship," Blumenthal wrote.

What he wants to see

The requests cover January 2023 to the present. Blumenthal wants Cantor's annual revenue from the partnership and what the Lutnick family made from it. He asks whether Cantor requires independent audits of Tether and how it monitors Tether's sanctions and anti-money laundering compliance.

He also wants the terms of Howard Lutnick's divestiture, including any loan or provision from Tether that helped him transfer his stake to his children. Other requests cover communications involving Howard Lutnick about Tether, including after he left, whether Cantor ever considered ending the partnership, and its contacts with Trump's digital assets advisory council.

The sharpest questions concern illicit finance. Blumenthal asks what Cantor did to investigate laundering allegations, including claims tied to Iran's shadow banking network and Russian sanctions evasion.

"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," he wrote, according to CoinDesk. He added: "Disturbingly, Cantor Fitzgerald's lucrative business arrangements with Tether come at the expense of America's national security."

The Iran thread

The letter builds on a report the subcommittee's Democrats released on 28 September. It reviewed 846 wallets targeted by US and Israeli authorities and found that 84% transacted exclusively or nearly exclusively in USDT, a finding the report called preliminary. Blumenthal then asked Treasury and the Justice Department to investigate, which opened the Senate probe into Tether's Iran exposure that now reaches Cantor.

Tether says it has worked with law enforcement for years and supported freezes of about $550 million in Iran-linked USDT this year. CEO Paolo Ardoino says USDT offers no refuge to sanctioned parties. Cantor and Tether did not immediately respond to the letter.

As a member of the minority, Blumenthal cannot issue subpoenas. That could change soon. Prediction markets give Democrats roughly 61 to 64 percent odds of taking the Senate in November, which would hand them committees that can compel answers Cantor is now free to decline.

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