Blumenthal gives Binance, Tether and Trump crypto firms a Jan. 4 records deadline
Sen. Blumenthal told Binance, Tether, World Liberty Financial and Fight Fight Fight LLC to hand over records by January 4 or face other measures.
Sen. Richard Blumenthal has sent letters to Binance, Tether, World Liberty Financial, Fight Fight Fight LLC and other targets. The letters demand records and information by January 4, 2027, according to Wu Blockchain, which cited a statement on the senator's website. If the companies miss the date, the Senate Permanent Subcommittee on Investigations (PSI) says it will seek other ways to secure their cooperation.
Wu Blockchain noted that no final conclusions have been reached in any of the investigations.
What each probe covers
Per Wu Blockchain, the Binance and Tether inquiry looks at illicit use of cryptocurrencies and at interactions between the Trump administration and crypto companies. The inquiry into World Liberty Financial and Fight Fight Fight LLC concerns possible conflicts of interest in the Trump family's crypto businesses.
BeInCrypto adds that Blumenthal opened his Binance inquiry in February. Binance rejected the allegations of Iran sanctions evasion in March and called them false. A September minority staff report found that 84% of 846 sanctioned or seizure-targeted Iran-linked wallets used USDT almost exclusively, according to BeInCrypto. The outlet says the same report put Tether at about 60% of stablecoin market value. Tether replied the day the report came out, citing about $550 million in Iran-linked freezes it supported this year.
BeInCrypto also reported an October 22 letter asking Tether for records on Nxum, a consulting firm co-founded by Bo Hines, who formerly directed a White House crypto council. The letter cites Wall Street Journal reporting that Tether sent Nxum more than $6 million. That Wall Street Journal figure is relayed through BeInCrypto and is not confirmed in the other sources here.
The Trump-linked ventures
BeInCrypto says Fight Fight Fight manages the Official Trump (TRUMP) meme coin, which is covered by the inquiry. Blumenthal points to reports that the firms may be helping officials sidestep ethics rules and accepting money from foreign governments, according to the outlet. Those are reports cited by the senator, not findings.
Enforcement power and what is unresolved
The Defiant stressed that Blumenthal's current position as ranking member does not give him unilateral subpoena authority. BeInCrypto says he leads the panel's Democratic minority now but is set to chair it when the new Congress convenes in January. It adds that chairs can issue subpoenas.
None of the sources say whether he would use them. They also don't say what other options the subcommittee has in mind. The open questions are whether the recipients comply by January 4 and what the PSI does if they don't. BeInCrypto framed that date as a test of how a Democratic-led panel treats the largest stablecoin issuer and Trump-linked ventures.
Sources
- U.S. Senator Blumenthal Sends Letters to Binance, Tether, and Trump Family Crypto Firms: Comply with Probe by Deadline or Subcommittee Will Seek Other Means Wu Blockchain
- Blumenthal Sets Jan. 4 Deadline for Binance, Tether and Trump Crypto Firms The Defiant
- Senate Probe Puts Binance, Tether and Trump-Linked Crypto Firms on Notice BeInCrypto
Written with AI assistance from the sources above and checked against them. Not investment advice.