Overview
- Senator Richard Blumenthal sent a letter to Cantor Fitzgerald CEO Brandon Lutnick on Thursday demanding documents about the firm’s work for Tether and set an October 23 deadline for a response.
- A staff report released September 28 found that 84% of 846 wallets flagged by OFAC and Israel’s counter‑terror financing unit relied heavily on Tether’s USDT between June 2021 and August 2026.
- Cantor began custody of Tether’s U.S. Treasury reserves in 2021 and is reported to own about 5% of Tether, prompting Blumenthal to ask for records of revenues, payments to the Lutnick family, and how ownership was transferred.
- Tether says it cooperates with law enforcement and helped freeze roughly $550 million in Iran‑linked USDT during 2026, but there has been no public Treasury or Justice Department enforcement action tied to Blumenthal’s requests yet.
- The inquiry raises questions about centralized freeze powers, custodian conflicts, and independent audits for stablecoins, and the next steps to watch are Cantor’s reply by October 23 and whether Treasury or DOJ opens formal investigations.