Key facts
- Cantor Fitzgerald is being investigated by Senator Richard Blumenthal over its ties to Tether.
- Blumenthal is demanding records on Cantor's partnership with Tether and alleged profits made by Commerce Secretary Howard Lutnick's family.
- The probe follows a report alleging Tether's USDT is used in Iran's shadow banking network.
- Cantor Fitzgerald reportedly custodies billions in Tether reserves and acquired rights to a 5% stake in Tether in 2024.
- Blumenthal alleges Cantor's stake in Tether has grown from $600 million to $10 billion since Trump returned to office.
- Howard Lutnick reportedly received over $250 million in the same period.
US investment bank Cantor Fitzgerald is facing a probe by a Senate Democrat over its business dealings with stablecoin issuer Tether. Senator Richard Blumenthal, the ranking Democrat on the Senate’s Permanent Subcommittee on Investigations, has requested records from Cantor chairman Brandon Lutnick regarding the firm's partnership with Tether and its compliance with banking and sanctions laws.
Blumenthal's inquiry, detailed in a letter sent Thursday, also seeks information on communications involving Commerce Secretary Howard Lutnick about Tether, particularly after he stepped down from his role at Cantor. The senator expressed concern that Cantor's "lucrative business arrangements with Tether come at the expense of America’s national security."
The investigation puts Cantor's significant involvement with Tether under a spotlight. Cantor Fitzgerald reportedly custodies tens of billions of dollars in Tether's US Treasury bill reserves and acquired rights to a 5% stake in the stablecoin issuer in 2024. Blumenthal alleges that the estimated value of Cantor's stake in Tether has surged from $600 million to $10 billion since Donald Trump returned to office. During this period, Howard Lutnick reportedly received over $250 million, including a $192 million distribution from Cantor Fitzgerald.
This scrutiny follows a report last month by Democratic investigators that alleged Tether's USDT has become a significant tool for Iran's shadow banking network. Blumenthal has urged the US Treasury and Justice Department to investigate potential sanctions violations. Tether has stated it has been cooperating with law enforcement for years and has frozen nearly $550 million in Iran-linked USDT this year.
Cantor's relationship with Tether dates back to 2021, when it began acting as a custodian for a portion of the stablecoin's reserves. Howard Lutnick, who oversaw Cantor as chairman and CEO at the time, helped negotiate the firm's investment in Tether in April 2024. He stepped down from Cantor after his confirmation as commerce secretary in February 2025, with his son Brandon subsequently named chairman.
Beyond financial and compliance records, Blumenthal is also seeking details on Howard Lutnick's divestiture from Cantor and any financing Tether provided to him or his family. The senator has also inquired about Cantor's requirement for independent audits of Tether and whether the firm has ever considered terminating its partnership.