Tether Senate inquiry probes Cantor’s reported stake, which senator values at $10B

The Senate inquiry into Tether is testing a distinction: holding the assets behind USDT is not the same as controlling its transfers. Senator Richard Blumenthal’s October 8, 2026 letter asks Cantor Fitzgerald for ownership, custody and compliance records, including details of a reported 5% stake he estimates is worth about $10 billion.

Key takeaways

• Cantor’s requested response deadline is October 23, 2026.
• Democratic investigators reported near-exclusive USDT use in 84% of selected Iran-linked wallets.
• Tether says Iran-linked freezes reached roughly $550 million during 2026.
• Reserve custody and blockchain freezing are separate functions.

Per crypto.news reports, the letter from Blumenthal—who serves as the top Democrat on the Senate Permanent Subcommittee on Investigations—was directed at Cantor chairman Brandon Lutnick. He seeks revenue figures, ownership terms, reserve arrangements, audits, sanctions practices and communications about Tether’s regulatory affairs.

Tether Senate inquiry examines ownership and custody income

Blumenthal wants contractual records showing what Cantor earns from Tether and what services it provides. Most requested records cover the period beginning January 2023, alongside historical details of the partnership.

Starting in 2021, Cantor took on holdings of U.S. Treasury securities that back USDT, and by 2024, while Howard Lutnick was serving as chairman and CEO, the firm secured rights to what was reported as a 5% stake in Tether. Blumenthal estimates that interest rose from $600 million to about $10 billion after President Donald Trump returned to office. The valuation comes from external reporting, not a public share price or confirmed payment.

The senator also claims Cantor earns tens of millions of dollars annually from Tether’s assets. He requests yearly payments to Cantor and the Lutnick family, client-screening policies, information received from Tether and conditions for ending the partnership.

Howard Lutnick left Cantor’s leadership after his confirmation as commerce secretary in February 2025. Brandon became chairman, and another son, Kyle, became vice chairman. Blumenthal cites more than $250 million in reported income after Trump’s return, including a $192 million distribution from Cantor; those amounts are not entirely attributable to Tether.

The letter asks about the transfer of Lutnick’s interests to his children, possible Tether financing, and communications before and after his departure involving fundraising, lobbying, regulatory compliance and federal officials.

Iran-linked wallet findings and Tether’s freeze figures

Democratic subcommittee investigators reported that 84% of 846 wallets they examined used USDT exclusively or almost exclusively. Their September 28, 2026 report covered wallets sanctioned or targeted for seizure over associations with Iran and regional proxies—not a random sample of USDT users.

The report alleges Tether failed to freeze some wallets investigators linked to illicit finance. Blumenthal referred the findings to Treasury and the Department of Justice, seeking investigations into possible violations.

In a September 28 statement, Tether said cooperation with U.S. authorities helped freeze roughly $550 million during 2026 across wallets connected to Iran’s central bank and sanctions networks. It cited more than $344 million in two addresses in April and more than $130 million in four wallets in July. Those company-reported balances do not measure prohibited transfers prevented.

Reserve custody does not confer token-freezing authority

Cantor holds reserve assets; Tether operates the controls that block specified USDT addresses on supported blockchains. The Tether Senate inquiry asks about responsibilities across those distinct functions.

A wallet-to-wallet transfer does not require movement of a Treasury security. Minting and redemption can affect reserves, while a blockchain freeze prevents a designated balance from moving through the token contract. Freezing is separate from confiscation or payment to a victim.

Financial audits also address a different question from sanctions screening. Tether reported completing its first full financial-statement audit covering 2025 after announcing a Big Four engagement in March. An unqualified historical opinion does not establish compliance for individual wallet transactions in 2026.

Records requested and the next deadline

Blumenthal requests records documenting custody arrangements, independent audits, sanctions screening and regulatory communications. The letter also directs Cantor to preserve relevant records and requests its response by October 23, 2026.

Article produced with the assistance of artificial intelligence and reviewed by the editorial team.