Michaela
U.S. Senator Elizabeth Warren has raised concerns about President Donald Trump’s Commerce Secretary nominee, Howard Lutnick, questioning his judgment due to his investment firm’s strong ties to Tether. Tether is a cryptocurrency platform criticized for allegedly facilitating illegal activities and labeled as “the favorite cryptocurrency of outlaws.”
In a letter dated January 27, Warren also raised concerns about Lutnick’s ability to prioritize the interests of the American people over his own financial gains, should he be confirmed as Secretary of Commerce.
The senator noted that while Howard Lutnick had divested his interest in Cantor Fitzgerald, which holds a 5% stake in Tether and acts as its asset manager, lingering concerns remain regarding his continued affiliations with the company and its associates.
“In fact, you are handing over the reins of one of your companies to your 26-year-old son, who has worked closely with Tether on your behalf. This change in control does not erase concerns over whether you are able to meaningfully separate yourself or your interests from Cantor Fitzgerald — the company that you treat as your “personal fiefdom” — and its investments,” Warren wrote.
Per Warren, if Howard Lutnick is confirmed during his January 29 hearing, he would gain “extraordinary access” to President Donald Trump and key officials overseeing the regulation of Tether. “Putting you in a position to influence policies that may directly or indirectly impact Tether and the entire cryptocurrency industry,” she added.
Warren has requested that Lutnick respond to 13 questions to clarify his involvement in the close ties between Cantor Fitzgerald, its affiliates, and Tether. She set a deadline of February 10, 2025, for his responses.
Senator Warren specifically inquired whether Cantor Fitzgerald conducted thorough due diligence to ensure that Tether adheres to Know Your Customer (KYC) regulations under the Bank Secrecy Act, along with compliance with international sanctions and Anti-Money Laundering (AML) laws.
Additionally, Warren emphasized that criminal actors are exploiting Tether’s stablecoin, also named Tether, to facilitate illicit activities, including money laundering, sanctions evasion, and funding operations like North Korea’s nuclear program.
In early January, the Tron T3 Financial Crime Unit, formed in partnership with Tether and TRM Labs, reported disturbing findings connecting North Korean operatives to illicit cryptocurrency activities. Investigations uncovered an estimated $3 million in USDT that was allegedly funneled to support the regime’s operations.
Read More
- Senator Warren Tells Treasury Nominee To Be Ready for Questions at Confirmation Hearing
- Trump’s Crypto Revolution? Howard Lutnick Takes the Helm—Strap In, Crypto World!
- Tether CEO Cautious About U.S. Expansion, But Sees Big Profits Ahead
Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
