Cantor Fitzgerald has come under fresh scrutiny from U.S. Senator Richard Blumenthal, who is demanding details about the investment bank’s financial ties to Tether, including a reported $10 billion stake and payments received by Commerce Secretary Howard Lutnick.

Blumenthal, the ranking Democrat on the Senate Permanent Subcommittee on Investigations, sent a letter to Cantor chairman Brandon Lutnick on October 8, requesting records about the firm’s earnings, custody services and monitoring of potential sanctions violations. The senator gave Cantor until October 23 to respond and asked for communications involving Howard Lutnick before and after he joined the Trump administration.

The request follows a September investigation by Democratic subcommittee staff alleging that Tether’s USDT stablecoin has been widely used in Iran’s financial networks. Blumenthal is seeking information about Cantor’s oversight of the stablecoin issuer, although the letter does not establish that either company violated U.S. law.

Cantor Fitzgerald faces questions over $10 billion Tether stake

At the center of the inquiry is Cantor Fitzgerald’s financial relationship with Tether, which dates to 2021, when the investment bank began holding U.S. Treasury securities backing the USDT stablecoin.

The partnership later expanded into an ownership arrangement. Cantor acquired rights to a reported 5% stake in Tether in 2024, during Howard Lutnick’s tenure as chairman and CEO.

In his October 8 letter, Blumenthal estimated that the value of Cantor’s interest had climbed from $600 million to approximately $10 billion since President Donald Trump returned to office. The estimate is drawn from external reporting and has not been confirmed through a public company valuation.

Beyond the ownership interest, the senator claimed Cantor earns tens of millions of dollars annually from the assets it holds on Tether’s behalf. He requested records showing the bank’s yearly revenue from the partnership and how much the Lutnick family received during the same period.

Blumenthal wrote that “Cantor Fitzgerald’s lucrative business arrangements with Tether come at the expense of America’s national security.” The statement represents the senator’s allegation, not a finding by a court or enforcement agency.

The letter asks Cantor to disclose its services to Tether, investment positions, custody arrangements and any financial audits involving the stablecoin issuer’s reserves.

Senator seeks details on Howard Lutnick’s Tether earnings

Howard Lutnick’s former leadership role at Cantor has become another subject of the inquiry, particularly the arrangements made when he entered the Trump administration.

After the Senate confirmed Lutnick as commerce secretary in February 2025, he left his leadership positions at Cantor. His son Brandon became chairman, while another son, Kyle, assumed the vice chairman role.

Blumenthal claims the commerce secretary received more than $250 million after Trump’s return to office, including a $192 million distribution from Cantor Fitzgerald. The figures relate to Lutnick’s reported income and should not be treated as earnings attributable entirely to Tether.

The senator wants Cantor to explain how Lutnick transferred his ownership interests to his children and whether Tether provided any loans or financing connected to that transaction.

He requested communications involving the commerce secretary, including discussions about Tether’s regulatory compliance, potential fundraising, lobbying and contacts with federal officials.

Records covering Lutnick’s involvement after leaving Cantor are part of the request. Blumenthal specifically asked about communications concerning Tether’s fundraising activities and regulatory matters.

The questions follow earlier scrutiny of Lutnick’s financial relationship with Tether during his confirmation process. In January 2025, Senator Elizabeth Warren questioned whether his business interests could create conflicts while serving as commerce secretary.

Tether faces questions over alleged Iran sanctions evasion

The financial inquiry follows a September 28 report from Democratic investigators on the Senate Permanent Subcommittee on Investigations examining cryptocurrency transactions connected to Iran.

Investigators reviewed 846 digital asset wallets sanctioned or otherwise targeted because of suspected links to Iran and related organizations. Their analysis found that 84% had conducted transactions exclusively or almost exclusively using Tether’s USDT stablecoin.

Blumenthal alleged that Tether had failed to freeze certain wallets despite publicly available information connecting them to illicit financing. He subsequently called on the Treasury and Justice departments to investigate possible banking and sanctions violations.

The senator’s October letter extends those questions to Cantor, seeking information about the firm’s anti-money laundering procedures, sanctions monitoring and due diligence on Tether.

He asked whether Cantor requires independent audits of the stablecoin issuer’s assets and whether the bank has ever considered ending the business relationship.

Tether has disputed allegations that it fails to cooperate with authorities. In a September 28 statement, the company said it had helped freeze approximately $550 million in Iran-linked USDT during 2026.

The issuer identified more than $344 million frozen across two addresses in April and over $130 million across four wallets in July. According to Tether, the actions involved addresses identified by U.S. authorities as connected to Iran’s central bank and sanctions networks.

Tether CEO Paolo Ardoino defended the company’s compliance efforts, stating that “USD₮ is not a haven for sanctioned actors, terrorist organizations or criminal networks.”

The company said it had supported more than 2,900 investigations worldwide through cooperation with law enforcement agencies. Its Iran-linked asset freezes were conducted alongside U.S. government efforts targeting sanctioned financial networks.

Cantor Fitzgerald must respond by October 23

Blumenthal has requested that Cantor preserve records and communications concerning its partnership with Tether and submit responses by October 23, 2026.

The document requests generally cover the period from January 1, 2023, through the present, although the senator seeks historical information about when the relationship began.

Beyond the financial records, Cantor must explain its monitoring of sanctions compliance, the steps taken to examine allegations involving Iran and Russia, and its procedures for reviewing business partners operating in foreign jurisdictions.

The senator requested communications between Cantor and members of the President’s Council of Advisors on Digital Assets, alongside records involving Tether’s financial backing and potential fundraising.

According to the letter, the requested records include emails, internal memoranda, meeting notes, electronic messages, financial documents and communications involving relevant subsidiaries and affiliates.

Blumenthal sent the letter in his capacity as the ranking minority member of the subcommittee. The request is part of a congressional inquiry and does not constitute a formal determination that Cantor or Tether breached banking or sanctions laws.

As of October 9, no public response from Cantor Fitzgerald to the October 8 request had been identified. The senator’s letter does not announce a committee hearing or establish a separate deadline for enforcement proceedings.