Blumenthal Demands Cantor Fitzgerald Hand Over Tether Records in $10 Billion Senate Probe

Published October 10, 2026, 14:37 PKT. Based on the October 8, 2026 press release from Senator Richard Blumenthal's office and reporting by Cointelegraph, Unchained, crypto.news, and Coinotag.

U.S. Senator Richard Blumenthal demanded on October 8 that Cantor Fitzgerald turn over records detailing its financial relationship with Tether, the issuer of the world's largest stablecoin, escalating a Senate inquiry into how USDT moves through Iran's shadow banking network.

The $10 billion stake and the $250 million payout

Blumenthal, the ranking Democrat on the Senate Permanent Subcommittee on Investigations, sent the letter to Cantor chairman Brandon Lutnick, according to a press release from the senator's office dated October 8. The letter lists 13 numbered requests and sets an October 23 response deadline, and it was copied to Senator Ron Johnson, the subcommittee's chairman, according to Unchained.

Cantor Fitzgerald acquired rights to a 5% stake in Tether in 2024, while Howard Lutnick was chairman and chief executive, according to Cointelegraph. Blumenthal estimates the stake grew from $600 million to about $10 billion since President Donald Trump returned to office, a figure drawn from International Consortium of Investigative Journalists reporting that Tether has not confirmed, according to Unchained.

The senator also said Cantor collects tens of millions of dollars a year in fees for the assets it holds on Tether's behalf, and that Howard Lutnick has made more than $250 million over the same period, including a $192 million distribution from Cantor Fitzgerald, according to the Senate press release. Cantor's relationship with Tether began in 2021, when it started holding some of the U.S. Treasury bills backing USDT, and Howard Lutnick helped negotiate the 2024 investment before stepping down after his confirmation as commerce secretary in February 2025, according to Cointelegraph. Brandon Lutnick, his son, is now chairman.

The 846 Iran-linked wallets

The probe follows a report last month by Democratic investigators on the subcommittee alleging that Tether's USDT has become a key tool for Iran's shadow banking network, according to Cointelegraph. Investigators found that 84% of 846 Iran-linked wallets transacted almost entirely in USDT, according to Coinotag's summary of the Senate materials. Blumenthal has called on the U.S. Treasury and Justice Department to investigate potential sanctions violations, according to Cointelegraph.

Tether responded with a statement saying it has worked with law enforcement for years and has frozen nearly $550 million in Iran-linked USDT this year, according to Cointelegraph. In his October 8 letter, Blumenthal wrote: "Disturbingly, Cantor Fitzgerald's lucrative business arrangements with Tether come at the expense of America's national security." He added: "Just as Tether has made untold millions in interest and investments from the stablecoins used in these illicit activities, so has Cantor Fitzgerald profited from its relationship with Tether."

What Cantor must answer by October 23

Blumenthal asked Cantor to explain how it monitors Tether's compliance with banking and sanctions laws, and to produce all communications involving Howard Lutnick about Tether, including messages sent after he left the firm, according to the Senate press release. The requests also cover the terms of Lutnick's divestiture from Cantor, details of any loans or financing Tether provided to Lutnick or his family to facilitate the transfer of ownership to his children, whether Cantor requires independent audits of Tether, whether it has ever reviewed terminating the partnership, and what steps it has taken to investigate illicit finance and sanctions evasion allegations, according to Cointelegraph.

The letter does not establish that either company violated U.S. law, according to crypto.news. Cointelegraph said it reached out to Cantor Fitzgerald and Tether but did not receive an immediate response.

This article is news reporting and is not investment advice.

Sources

• Press release from Senator Richard Blumenthal's office (Oct. 8, 2026), primary source
• Cointelegraph, secondary source
• Unchained, secondary source
• crypto.news, secondary source
• Coinotag, secondary source