A senior Democratic member of the U.S. Senate Permanent Subcommittee on Investigations is pressing Cantor Fitzgerald to explain its relationship with Tether, the issuer of USDT. Richard Blumenthal sent a letter on Thursday to Cantor CEO Brandon Lutnick, asking for details about the firm’s banking business, its sanctions compliance safeguards, and past dealings between Tether and Brandon’s father, Howard Lutnick, during his time at the company. Blumenthal has also been examining Tether’s role in Iran’s financial system and said Cantor has benefited from its business relationship with the stablecoin issuer, which manages Tether’s U.S. reserve assets. He wrote that just as Tether earned substantial interest income and investment returns from stablecoins used in illegal activity, Cantor Fitzgerald also profited from working with Tether. The report added that if Democrats make further gains in the November election, Blumenthal and his colleagues could soon gain broader investigative authority.
On Oct. 9, BlockBeats reported that Richard Blumenthal, the top Democrat on the U.S. Senate Permanent Subcommittee on Investigations, is asking Wall Street investment bank Cantor Fitzgerald to explain its relationship with Tether, the world’s largest stablecoin issuer.
Letter sent to Cantor Fitzgerald CEO
The report said that if Democrats continue to make gains in the November election, Blumenthal and his colleagues could soon obtain broader investigative authority.
On Thursday, Blumenthal sent a letter to Cantor Fitzgerald Chief Executive Officer Brandon Lutnick. Brandon is the son of U.S. Commerce Secretary Howard Lutnick. After joining the U.S. government, Howard Lutnick handed management control of the company to his son.
Questions cover Tether, Iran, and sanctions compliance
Blumenthal has previously been investigating Tether’s role in Iran’s financial system. He said there is a lucrative business relationship between Tether, the issuer of USDT, and Cantor Fitzgerald, which manages Tether’s U.S. reserve assets.
In the letter, Blumenthal wrote: 「Just as Tether has earned immeasurable interest income and investment returns from stablecoins used in these illegal activities, Cantor Fitzgerald has also profited from its relationship with Tether.」
He also asked Brandon Lutnick to explain the company’s banking business and its sanctions compliance safeguards, and sought information about his father’s past dealings with Tether while he was at Cantor.
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