Cantor Fitzgerald faces Senate Democrat’s questions over Tether ties
Reported by Cointelegraph · AI-assisted summary by ChikoCorp AI News Desk
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Summary
Senator Richard Blumenthal, a Democrat on the Senate Permanent Subcommittee on Investigations, has questioned US investment bank Cantor Fitzgerald over its business ties with stablecoin issuer Tether. The senator is seeking records about Cantor’s partnership with Tether, payments to Commerce Secretary Howard Lutnick’s family, and how compliance with banking and sanctions laws is monitored. Cantor owns a 5% stake in Tether and manages tens of billions of dollars in Tether’s US Treasury bill reserves.
Why it matters
Blumenthal argues that Cantor Fitzgerald’s profitable relationship with Tether poses risks to national security, citing allegations that Tether’s USDT has been used by Iran’s shadow banking network to evade sanctions. The senator has called for investigations by the US Treasury and Justice Department into potential violations, highlighting concerns about illicit financial activities involving stablecoins.
Key context
Cantor Fitzgerald began custodial services for Tether’s US Treasury reserves in 2021 and invested in a 5% stake in Tether in April 2024. Howard Lutnick, acting as Cantor chairman and CEO during that time, negotiated the investment before stepping down after becoming Commerce Secretary in February 2025. His sons now lead Cantor, with Brandon as chairman and another son as vice chairman. The inquiry follows a prior Senate report on Tether’s role in sanction evasion.
Key numbers and entities
Cantor Fitzgerald, Tether, Senator Richard Blumenthal, Commerce Secretary Howard Lutnick, Brandon Lutnick. Blumenthal alleges Tether’s 5% stake value increased from $600 million to $10 billion since 2021, with Howard Lutnick receiving over $250 million including a $192 million distribution. Tether froze nearly $550 million in Iran-linked USDT this year.
What remains unclear
The source does not provide Cantor Fitzgerald’s response to the allegations or details on how compliance and audit processes are conducted. It is unclear what steps Cantor has taken regarding sanctions investigations or whether it has considered ending its partnership with Tether. Details about any loans or financing linked to Lutnick’s family related to Cantor ownership transfers are also not disclosed.