U.S. senators investigate transactions allegedly related to Trump's former crypto advisor Tether
The Democratic chair of the permanent investigative subcommittee of the U.S. Senate requested that Tether CEO Paul Aldoino provide records related to a purported transaction between Tether and Nxum. Nxum is a marketing company co-founded by former White House crypto advisor Bo Hayes.
U.S. Senator Richard Blumenthal reported in The Wall Street Journal that after this stablecoin issuer signed a $6.3 million agreement with Nxum, it sought information from Aldoino.
In a letter to Aldoino on Thursday, the congressman from Connecticut stated that the Senate Standing Committee on Investigations requested records and information "related to contracts, payments, communications, and lobbying" between Tether and Haines Company Nxum. Blumenauer said that the investigation into Nxum, Tether, and Haines is part of what he referred to as the Trump administration's "self-enrichment and self-trading through cryptocurrency companies."
Blumenthal stated: 'Despite not being able to divest himself of one-third of his shares in Nxum, Haines continued to closely collaborate with Nxum through encrypted messaging apps, coordinating lobbying efforts and advocacy activities, and exerting pressure on members of Congress who opposed or sought to amend the pending stablecoin legislation.'
He also said, "According to reports, this information also shows that Tether directly coordinated the lobbying efforts of Nxum regarding the GENIUS bill. This bill will regulate stablecoins, and CEO Paulo Aldoino has instructed Nxum to 'thoroughly crush' the opponents of this legislation."
The member of parliament added:
The terms and nature of the business relationship between Tether, Nxum, and Bo Haynes are highly unusual, raising concerning ethical and legal issues. This indicates that Tether was likely well aware that making payments to a current White House official who plays a direct role in shaping cryptocurrency legislation, and whose legislation is crucial to their business, is both illegal and inappropriate.
Haines served as the Executive Director of the President's Digital Assets Advisory Committee from January to August 2025, after which he left the White House to join Tether as a "Strategic Advisor." Subsequently, he became the CEO of Tether US. Another crypto advisor in the Trump administration, Harry Rong, resigned in July 2026 and joined Nxum in August, taking on the role of Managing Director.
Related Reading:Trump did not mention "cryptocurrencies" once during the White House Cybercrime Roundtable meeting.
Trump, his family, and members of his administration are still under scrutiny for allegedly obtaining substantial economic benefits through crypto policies and laws that they control or have the ability to influence. The president disclosed that he earned $1.4 billion in income from crypto-related investments in 2025.
Cointelegraph sought a comment from Tether regarding this investigation and related reports, but did not receive an immediate response.
Cryptography-related issues may become a factor in the mid-term elections
Although Blumenthal's authority as the Democratic Party's lead member of the Senate Standing Committee on Investigations is limited, the results of the midterms in 2026 could change the party control over the House of Representatives and the Senate. This could give this Connecticut lawmaker and other Democrats more authority to investigate Trump and his administration's connections with the crypto industry, including those that may constitute conflicts of interest.
As of Friday, event contracts on the predictive market platforms Kalshi and Polymarket indicated that it is more likely for the Democratic Party to regain a majority in both houses of Congress in 2027. Among them, Kalshi projected a 92% probability for the Democratic Party to win the House of Representatives and a 68% probability to win the Senate. The election date in the United States is November 3rd.
