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      U.S. Senate Investigates Trump Family's Cryptocurrency Ties and Tether's Sanctions Compliance

      The Permanent Subcommittee on Investigations of the U.S. Senate Committee on Homeland Security and Governmental Affairs has released a report alleging that Tether, a prominent stablecoin issuer, has become a significant financial conduit for Iran's shadow banking system. The report calls for investigations by the U.S. Treasury Department and the Justice Department to determine if Tether has violated sanctions and banking laws. It highlights connections between Tether and the Trump administration, including business dealings with Cantor Fitzgerald, which is controlled by the family of Commerce Secretary Howard Lutnick, and the involvement of Bo Hines, the former head of the White House Cryptocurrency Committee, who now leads Tether's U.S. operations.

      This investigation is part of a broader inquiry into the cryptocurrency interests of former President Donald Trump and his family. In May 2025, Senator Richard Blumenthal initiated an investigation into various cryptocurrency-related entities associated with Trump, including the TRUMP token and World Liberty Financial. Subsequently, in June, Senators Elizabeth Warren and Jeff Merkley sought explanations from MGX and Binance regarding their use of the Trump-affiliated stablecoin USD1 in a $2 billion investment settlement.

      In November 2025, Democratic members of the House Judiciary Committee accused the Trump family of profiting from cryptocurrency ventures, estimating their assets at up to $11.6 billion, with revenues exceeding $800 million in the first half of 2025. The report also noted that in 2026, Congressman Ro Khanna began investigating a $500 million acquisition by members of the UAE royal family for a 49% stake in World Liberty Financial, questioning whether this transaction was influenced by U.S. policies on artificial intelligence chips in the UAE.

      © 2026 KLEA News. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

      Source: KLEA News

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