US Senator Blumenthal demands records from Binance and Tether
The Senate Permanent Subcommittee on Investigations gave firms until 4 January 2027 to comply with a probe into illicit finance and Trump family crypto projects.
Key takeaways
- 1Senator Blumenthal set a 4 January 2027 deadline for firms to hand over records.
- 2The probe targets Binance, Tether, World Liberty Financial and Fight Fight Fight LLC.
- 3Investigators are examining potential conflicts of interest in Trump family crypto businesses.
- 4The move follows Democratic gains in the 5 November US midterm elections.
- 5Tether remains the largest stablecoin with a market value of $176.9bn.
US Senator Richard Blumenthal demanded records from Binance, Tether and crypto firms linked to the Trump family on Monday. The letters were sent to World Liberty Financial and Fight Fight Fight LLC as part of a widening probe into illicit finance and potential conflicts of interest. Blumenthal, who serves as the ranking member of the Senate Permanent Subcommittee on Investigations, set a deadline of 4 January 2027 for the firms to comply.
The senator said the subcommittee would seek other means to ensure cooperation if the companies fail to submit the requested records and information by that date. The investigation into Binance and Tether focuses on the illicit use of digital assets and the companies' interactions with the Trump administration. Tether is currently the largest stablecoin issuer in the market, with a total valuation of $176.9bn, according to YourKhabri data.
Binance is facing this scrutiny while recovering from a security exploit earlier in November that resulted in the loss of $6.3bn. The exchange froze $971m in USDT following the hack, and its founder has since called for an industry-wide security alliance to share data and freeze stolen funds. The subcommittee is examining how such large-scale platforms manage illicit flows and their regulatory compliance during periods of market stress.
The probe into World Liberty Financial and Fight Fight Fight LLC examines whether the Trump family's involvement in the crypto industry creates conflicts of interest. These firms have been under increased pressure since the US midterm elections on 5 November, when Democrats won control of both houses of Congress. Lawmakers have since indicated they will prioritise the oversight of digital asset projects associated with political figures.
Market activity surrounding Trump-related projects has been volatile since the election results. The TRUMP token fell by 20 per cent on 5 November as investors reacted to news that lawmakers planned to investigate crypto ventures associated with the former president. YourKhabri earlier reported that Trump Media transferred 4,259 bitcoin to Crypto.com on 5 November, a move valued at approximately $343.67m.
The subcommittee is looking into such transfers and the broader operational ties between these private entities and political figures. Blumenthal said the subcommittee has reached no final conclusions in its investigations at this stage. The demand for records marks the first significant move by the subcommittee since the change in congressional leadership, signalling a more aggressive approach to crypto oversight in the coming year.
Reported and edited by the YourKhabri desk under our editorial policy. Nothing here is investment advice.