A newly formed super PAC, The Fellowship, has made its first expenditure, spending $300,000 on advertising for a Republican candidate through a firm co-founded by Tether's US CEO, Bo Hines. This move has raised questions about the connection between the PAC and Tether, as well as potential self-dealing. The Fellowship PAC was announced last year with pledges of $100 million, but its current accounts show no contributions.

The PAC's first expense filing to the Federal Election Commission indicates that it bought advertising for Georgia Republican Clay Fuller through Nxum Group, a firm co-founded by Hines and his father. The PAC's chairman, Jesse Spiro, is also an executive at Tether's US arm. While setting up a super PAC and paying oneself for services is not against US campaign-finance rules, it must be done at fair market value.

The Fellowship PAC's advertising effort on behalf of Fuller is not yet clear, but the funds were spent just as Fuller was winning his special election. The PAC's disclosures do not yet demonstrate a stockpile of contributions to back other candidates, despite its announcement last year that it would be established with pledges of $100 million.

An outside spokesperson for Tether stated that Tether International has no affiliation or oversight over Fellowship PAC, but did not respond to additional questions about Tether US. The PAC's first recipient of financial support, Fuller, is an incoming Republican member of the House of Representatives and has the backing of President Donald Trump. The firm paid by Fellowship PAC, Nxum, was co-founded by Hines, who is now the CEO of Tether's US arm.

It is unclear whether financial ties remain between Hines and Nxum. The PAC's treasurer, Mitchell Nobel, is an executive at Cantor Fitzgerald, a firm that manages assets for Tether's global operation. When Fellowship was announced as a new PAC last year, it was presented as a contrast from previous political engagement, with a focus on transparency and trust.

However, the PAC's current activities have raised questions about its connection to Tether and potential self-dealing.