Howard Lutnick, former Trump administration commerce secretary and longtime CEO of Cantor Fitzgerald, holds a significant financial interest valued at $600 million in Tether, a cryptocurrency firm now operating in El Salvador, according to a new report from The Guardian.
The scenario has raised concerns over potential conflicts of interest, especially given Tether's rocky regulatory history and its ties to the government of Salvadoran President Nayib Bukele, The Guardian claimed.
According to filings with the Securities and Exchange Commission and the Office of Government Ethics obtained by the outlet, Cantor Fitzgerald secured a 5% stake in Tether through a convertible bond deal in 2024. The firm also manages most of Tether's $134 billion in assets, largely composed of U.S. Treasury bills. Cantor earns tens of millions annually in fees for this role.
Tether, which issues the widely used stablecoin USDT, has faced multiple investigations over the years for allegedly misleading investors about its reserve backing and for alleged involvement in sanctions evasion and money laundering. In 2021 the Commodity Futures Trading Commission fined Tether $41 million for misrepresenting its dollar reserves, while a separate $18.5 million settlement was paid to the New York Attorney General's office.
Lutnick's connection to Tether emerged during his January 2025 confirmation hearings. In a letter, Senator Elizabeth Warren warned emphasized her concerns:
"In particular, your deep involvement with and support for Tether, a known
facilitator of criminal activity that has been described as 'outlaws' favorite cryptocurrency,' raises concerns about your judgment and ability to put the interests of the American people ahead of your own financial interests"
Tether relocated to El Salvador in January 2024, attracted by the country's crypto-friendly laws, including tax exemptions and minimal regulatory oversight. Tether executives, including founder Giancarlo Devasini and CEO Paolo Ardoino, have invested heavily in Salvadoran real estate and energy projects linked to Bitcoin mining.
Cantor Fitzgerald has also invested $775 million in Rumble, a video platform aligned with the Trump movement. Rumble subsequently signed a cloud services deal with Bukele's government.
The growing financial interdependence between Tether, Cantor Fitzgerald and El Salvador's government underscores broader ethical concerns. As Ricardo Valencia, a former Salvadoran diplomat, told The Guardian: "you can pay the Salvadoran government to do shady deals for a fee."
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