US Senator Demands Cantor Fitzgerald’s Tether Records Over Lutnick Family Profits

In Brief:

• US Senator Richard Blumenthal demands Cantor Fitzgerald’s financial records, examining Tether investment profits, reserve custody arrangements, and regulatory compliance practices.
• Cantor’s Tether stake reportedly reached $10 billion, while allegations involving Iranian financial networks raised concerns about sanctions compliance oversight.
• Investigators seek details about Lutnick family ownership transfers, reported income distributions, and potential Tether financing linked to Cantor’s leadership changes.

 

US Senator Richard Blumenthal has demanded financial records from Cantor Fitzgerald concerning its Tether partnership and the Lutnick family’s earnings. According to an October 8 letter, the senator is examining investment profits, reserve custody arrangements, and compliance procedures.

Blumenthal requested documents from Cantor Chairman Brandon Lutnick by October 23, including records detailing the firm’s financial relationship with Tether. The senator also instructed Cantor to preserve relevant communications and documents concerning its business dealings with the stablecoin issuer.

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Cantor Fitzgerald’s Tether Profits and Compliance Practices Face Investigation

Cantor Fitzgerald began managing portions of Tether’s US Treasury reserves in 2021, when Howard Lutnick led the financial services firm. The partnership expanded in April 2024 when Cantor negotiated an investment that strengthened its financial relationship with the stablecoin issuer.

Blumenthal’s letter estimates that Cantor’s 5% ownership stake increased from $600 million to approximately $10 billion following President Donald Trump’s return. Additionally, Cantor reportedly earns tens of millions of dollars annually through managing assets backing USDT, prompting requests for detailed revenue figures.

Blumenthal also requested records identifying financial benefits received by Lutnick family members through Cantor’s investment and custody arrangements with Tether. Beyond investment earnings, the inquiry examines Cantor’s oversight of Tether’s compliance with anti-money-laundering requirements and US sanctions regulations.

A September 28 subcommittee minority report alleged that USDT facilitated Iranian shadow banking operations and transactions involving illicit financial networks. Consequently, Blumenthal requested documents showing whether Cantor investigated allegations involving Iranian financial networks and Russian sanctions evasion.

Lutnick Family Ownership Transfers Raise Additional Questions

Howard Lutnick stepped down from Cantor following his February 2025 confirmation as commerce secretary, transferring leadership responsibilities to family members. Brandon Lutnick became chairman, while another son assumed the vice chairman position, prompting questions about the family’s ownership arrangements.

Blumenthal requested documents concerning the ownership transfer, including any financing arrangements or Tether loans connected to the transaction. The inquiry also references reports that Howard Lutnick received over $250 million in income, including a $192 million Cantor distribution.

Investigators additionally requested communications involving Tether fundraising, regulatory matters, and family ownership interests following Lutnick’s departure from Cantor Fitzgerald. Cantor faces an October 23 deadline to provide the requested records.

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