A pair of US Senators are demanding answers over potential conflicts of interest involving Commerce Secretary Howard Lutnick's ties to Tether and a separate controversy surrounding the Trump family-backed World Liberty Financial (WLF) crypto project.
Tether loan to Lutnick’s children questioned
Elizabeth Warren and Ron Wyden sent a letter to Lutnick on April 29 after a Bloomberg report revealed that a trust benefiting his four children borrowed from Tether in October 2025 — the same month he sold his multibillion-dollar stake in Cantor Fitzgerald to trusts for his children. The trust that received the Tether loan holds over half the equity in Cantor, and the loan was reportedly backed by “all assets” in the trust. Cantor manages the US Treasury bonds that back USDT, Tether’s stablecoin.
“If reports of this loan are accurate, it would raise serious questions about your relationship with Tether and the company’s influence on your policy decisions,” the senators wrote. “We want to ensure that Tether has not sought to bribe or otherwise exert control or influence over you.”
Lutnick, the former chairman and CEO of Cantor Fitzgerald, had personally vouched for Tether at the 2024 World Economic Forum, saying the company holds the reserves it claims. He became Commerce Secretary in February 2025 and completed his divestiture from Cantor in October of that year. The letter asks whether the Tether loan financed his stock sale, his role in negotiating it, the loan’s size and terms, and any contacts with Tether since taking office.
World Liberty Financial linked to sanctioned group
In a separate development, Warren also lashed out at World Liberty Financial after The Wall Street Journal reported that the Trump family-run crypto firm partnered with a blockchain venture called AB, which has links to the sanctioned Prince Group. The Prince Group is accused of running crypto scam compounds and human trafficking operations in Cambodia. Two men associated with AB were later sanctioned by the Trump administration for their alleged ties to the group. WLF’s arrangement with AB involved deploying its stablecoin USD1 on the AB Chain.
“As the Trump family puts themselves first, Congress needs to ensure that digital asset legislation protects our national security,” Warren said. WLF’s lawyer stated that the arrangement was a “limited non-exclusive technology integration,” not a partnership, and that due diligence did not flag sanctioned individuals. Both AB and WLF deny any direct relationship with the sanctioned men or the Timor-Leste resort project they were linked to.
The dual controversies highlight how Democrats are using crypto connections as a political weapon against President Trump and his allies ahead of the midterm elections, raising questions about influence, national security, and the need for stricter oversight of digital assets.
