Senator Probes Cantor Fitzgerald’s $10B Tether Stake Over Iran Sanctions Claims
Senator Richard Blumenthal has requested documents from Cantor Fitzgerald regarding its $10 billion Tether stake and potential business connections to Iran, amid national security concerns and compliance questions.
Senator Richard Blumenthal has asked for documentation regarding Cantor Fitzgerald’s commercial relationship with Tether, seeking particulars on reported holdings valued at $10 billion in Tether alongside other inquiries concerning business connections to Iran.
In an October 8 letter addressed to Brandon Lutnick, who heads the Lutnick family, the senior Senate Democrat serving on the Permanent Subcommittee on Investigations demanded additional records regarding the family’s financial stakes and extra payments concerning corporate sanctions. Cantor is given until October 23 to reply. The correspondence does not accuse either company of engaging in any wrongdoing.
Cantor Fitzgerald’s Tether Stake Draws Senate Scrutiny
Cantor Holdings acquired a stake in the U.S. government securities that support the USDT stablecoin back in 2021. By 2024, the firm owned 5% of Tether. Howard Lutnick served as Cantor’s CEO prior to and throughout the duration of this investment.
Blumenthal asserted that this holding valued $600 million prior to Donald Trump’s reelection and reached $10 billion afterward. While these numbers have appeared in other reports, they remain independently unverified. Furthermore, Blumenthal alleged that Cantor generates tens of millions of dollars each year by delivering security services for Tether.
The senator sought details concerning custody arrangements, additional trading activities, along with audit and revenue figures tied to the partnership. Additional areas of interest for the senator include financial advantages received by the Lutnick family, as well as Tether’s role in funding Howard Lutnick’s purchases of interests in outside enterprises on behalf of his children.
Read More: Tether Faces Senate Probe as Iran-Linked Wallets Put USDT Under Scrutiny
Lutnick stepped down as Cantor’s chairman in February 2025 following his nomination as Secretary of Commerce. Subsequently, Brandon Lutnick was named chairman and Kyle Lutnick assumed the role of vice chairman. Although Blumenthal referenced payments to Howard Lutnick exceeding $250 million—including $192 million originating from Cantor—he did not clarify whether every single one of those disbursements came directly from Tether.
Iran-Linked USDT Allegations Prompt Compliance Questions
An investigation published on September 28 by Democratic committee investigators evaluated 846 wallets linked to the United States and Iran. The review determined that nearly all of them—specifically 84%—utilized USDT. The September 28 findings criticized Tether for failing to stop these wallets from participating in money laundering operations.
Tether disputes accusations that it has cooperated poorly with law enforcement agencies. In official statements, the stablecoin issuer pointed out that it blocked approximately $550 million in Iranian USDT transfers throughout 2026 and aided international law enforcement across more than 2,900 separate investigations.
Blumenthal asked for files and information pertaining to Cantor’s anti-money-laundering strategies and protocols, alongside exchanges with government officials regarding sanctions placed on Iran and Russia. Additionally, Blumenthal requested communications between Cantor, government-designated official Howard Lutnick, and others concerning fundraising activities and broader regulatory affairs.
Read More: Tether Freezes $550 Million in Iran-Linked USDT as Senate Report Raises New Questions
The legal inquiry targets events taking place from January 2023 onward alongside background details regarding past collaborative projects. As of October 9, Cantor had not released any public reply to the letter.
The senator also posed inquiries regarding whether the digital asset enterprise Tether is required to audit its reserves and under what conditions the bank might cut ties with the company.
The senator demanded internal files and supplementary records. Congressional inquiries do not imply that either organization has breached any banking laws, regulations, or sanctions.
Frequently Asked Questions
Who sent the letter to Cantor Fitzgerald, and when was it sent?
Senator Richard Blumenthal, the top Senate Democrat on the Permanent Subcommittee on Investigations, sent the letter on October 8 to Brandon Lutnick.
What is the deadline for Cantor Fitzgerald’s response?
Cantor is required to respond by October 23.
Are the companies accused of violating any laws?
No. Congressional inquiries do not indicate that either company has violated sanctions or banking laws and regulations, and the letter does not accuse them of any wrongdoing.
How much Tether-linked USDT did the company reportedly freeze in 2026?
Tether stated that it blocked approximately $550 million in Iranian USDT transactions in 2026.
Web3 PR Specialist | KOL | Blockchain Advocate | Digital Strategy Expert based in Moscow, Russia. Focused on Web3 communications, blockchain, digital strategy, and community growth.
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