A newly-established super PAC, The Fellowship, has disclosed its first expenditure, revealing a $300,000 ad buy from Nxum Group, a firm co-founded by Bo Hines, who currently serves as the chief executive of Tether's US operations and previously advised President Donald Trump. The PAC, which claims to promote transparency, has been linked to Tether, although the company has not confirmed this connection.
The ad buy was made on behalf of Republican candidate Clay Fuller, who recently won a special election in Georgia. According to campaign finance rules, self-dealing is not prohibited as long as services are provided at fair market value.
The Fellowship PAC has not yet demonstrated a significant stockpile of contributions, despite being announced with pledges of $100 million. The PAC's disclosures do not show any contributions, and its current accounts are at zero. Tether has denied any affiliation or oversight over the Fellowship PAC. The PAC's first expenditure has raised questions about potential conflicts of interest, given Hines' ties to both Tether and Nxum Group.
As the US midterm elections approach, the crypto industry is likely to face increased scrutiny, and the actions of super PACs like The Fellowship will be closely watched.