Blumenthal Asks Cantor Fitzgerald for Records on Its Tether Stake and Custody Role
By Unchained
AI summary of the source article
Senator Richard Blumenthal, ranking member of the Senate Permanent Subcommittee on Investigations, sent a letter dated October 8 requesting records from Cantor Fitzgerald Chairman Brandon Lutnick regarding the firm's ties to Tether. The letter contains 13 requests covering Cantor's custodial relationship, annual partnership revenues, compliance monitoring for sanctions, and records concerning former chairman Howard Lutnick. The inquiry follows a subcommittee minority report that examined 846 wallets targeted by U.S. and Israeli authorities, alleging high usage of USDT in Iranian shadow banking. Tether reported supporting freezes that locked approximately $550 million in Iran-linked USDT this year.
Why it matters
The congressional inquiry targets the intersection of Wall Street custody services and offshore stablecoin operations, examining regulatory compliance and sanctions enforcement surrounding Tether's reserves.
Key facts
- Senator Blumenthal issued 13 requests to Cantor Fitzgerald regarding its custody role, revenue, and reported 5% stake in Tether, asking for responses by October 23.
- A Senate subcommittee staff review of 846 wallets targeted by U.S. and Israeli authorities found 84% transacted almost exclusively in USDT.
- Tether stated that freezes it supported this year locked up approximately $550 million in Iran-linked USDT.