Tether reportedly paid roughly $6.3 million to Nxum, a consulting firm in which former White House digital-assets official Bo Hines held a one-third ownership stake, according to a Wall Street Journal investigation published Tuesday evening. Hines served as executive director of the President’s Council of Advisers on Digital Assets from January 2025 until August 9, 2025, the period during which the GENIUS Act was negotiated and signed.
The arrangement was brokered in May 2025 through Notorious, a marketing company run by intermediary Peter Vincer, with a contract calling for monthly payments of $415,000 for at least two years. The first installment of $2.49 million moved through Bitfinex on May 11, 2025; Vincer kept $498,000 and the remainder went to a wallet used by Nxum. Two further installments followed in December 2025 and April 2026, bringing gross transfers to $7.47 million, with Nxum netting approximately $6.3 million after intermediary fees.
The Journal reported that Signal messages show Hines shared GENIUS Act talking points with Nxum partners and pushed lawmakers to extend the compliance window for stablecoin issuers from 18 months to 36 months. That distinction matters: the GENIUS Act took effect 18 months after enactment on January 18, 2027, while the prohibition on offering foreign-issued payment stablecoins to U.S. persons unless a permitted issuer stands behind them begins 36 months after enactment, on July 18, 2028. Trump signed the bill on July 18, 2025; Hines resigned on August 9, was named a Tether strategic adviser ten days later, and later led Tether's U.S. operations at the launch of its USAT stablecoin.
Nxum denied wrongdoing, saying Hines recused himself from firm matters, held only a passive ownership stake, and received no Tether-derived funds during his government service. The investigation also identified a proposed $56 million investment through which Tether would acquire a 25% stake in Nxum. The report lands days before Treasury's comment window on its proposed stablecoin rule closes on October 19, 2026, under docket TREAS-DO-2026-0496. That rulemaking will help determine whether foreign stablecoin issuers such as Tether can keep offering USDT to U.S. customers.
No criminal charges have been filed, and no referral to the Justice Department or Office of Government Ethics has been reported.
