Tether Loaned to Lutnick's Children to Buy Cantor Stake
Senators Elizabeth Warren and Ron Wyden are demanding answers after discovering that a trust for Commerce Secretary Howard Lutnick's children obtained a Tether loan. The senators want to know if the loan to purchase his Cantor Fitzgerald stake amounts to improper influence.
Key Takeaway
Tether loaning to a Cabinet secretary's family while his old firm backs USDT creates a textbook conflict.
A trust benefitting Commerce Secretary Howard Lutnick's four children borrowed from Tether to acquire more than half the equity in Cantor Fitzgerald, the New York financial services firm that manages billions in US Treasury bonds backing USDT.
The loan happened in October when Lutnick completed his divestiture from Cantor Fitzgerald after becoming Commerce Secretary in February. He'd publicly endorsed Tether at the World Economic Forum in Davos in 2024, saying the company had the money it claimed to have.
Senators Elizabeth Warren and Ron Wyden sent Lutnick a letter dated April 29 demanding answers. They want to know if Tether helped provide his children with the capital needed to purchase his Cantor stake in exchange for securing an interest in their assets. The senators wrote they want to ensure that Tether has not sought to bribe or otherwise exert control or influence over Lutnick.
Tether is the world's largest stablecoin issuer. Cantor manages the US Treasury bonds that back USDT, creating a financial link between Lutnick's former company and the crypto firm that lent to his family trust.
The senators asked Lutnick four specific questions: whether Tether's loan financed his divestiture from Cantor, whether he had a role in procuring or negotiating the loan, the loan's size and terms, and whether he had any contact with Tether or its executives since becoming Commerce Secretary on April 29.
This article was written based on reporting from Dlnews.
