A newly formed crypto-focused political action committee, the Fellowship PAC, has made its first major expenditure, spending $300,000 on advertising for a Republican candidate through a firm co-founded by Tether's US CEO, Bo Hines. The move marks the PAC's entry into the US midterm elections and has raised questions about the relationship between the PAC and Tether, as well as the potential for self-dealing. According to campaign finance rules, super PACs are allowed to pay for services as long as they are provided at fair market value. The Fellowship PAC's first expenditure was made to support Georgia Republican Clay Fuller, who recently won a special election.
The PAC has stated that it will back candidates who support the growth of emerging digital assets technology. The PAC's ties to Tether have been a subject of interest, with the company's US executive, Jesse Spiro, serving as the PAC's chairman.
The firm that received the PAC's expenditure, Nxum Group, was co-founded by Hines, who previously served as a crypto advisor to President Trump. The PAC's activities have been shrouded in mystery, with the organization declining to respond to questions about its formation and funding. The $300,000 expenditure is a relatively small amount compared to the PAC's announced goal of raising $100 million. The PAC's focus on supporting Republican candidates has also raised questions about its potential impact on the US midterm elections.