A newly formed political action committee, The Fellowship PAC, has disclosed its first expenditure, with $300,000 spent on advertising for a Republican candidate through a firm linked to Tether's US CEO. The PAC, which has been shrouded in mystery, has been reported to have ties to Tether, although the company has declined to confirm the connection. The advertising expenditure was made to Nxum Group, a company co-founded by Bo Hines, who now serves as the chief executive of Tether's US arm. Hines previously worked as an adviser to President Donald Trump, and his company, Nxum, has been involved in other high-profile campaigns, including a $1 million billboard advertising effort for MAGA Inc.
in support of Trump in 2024. The Fellowship PAC's first expense filing to the Federal Election Commission has raised questions about the potential for self-dealing, as the PAC's treasurer, Mitchell Nobel, is an executive at Cantor Fitzgerald, a firm that manages assets for Tether's global operation. According to Michael Beckel, a political reform expert at Issue One, there is no blanket prohibition on self-dealing in political committees, but services must be provided at fair-market rates.
The PAC's advertising effort on behalf of House of Representatives candidate Clay Fuller is not yet clear, but the expenditure has sparked interest in the crypto community, particularly given the PAC's reported ties to Tether. The Fellowship PAC has announced its support for several Republican candidates, including Fuller, who has been backed by Trump. However, the PAC's disclosures do not yet demonstrate a significant stockpile of contributions, despite an announcement last year that it would be established with pledges of $100 million.
The PAC's activity has been seen as a potential challenge to the leading crypto super PAC, Fairshake, which has expended millions in early contests. As the US midterm elections continue to unfold, the crypto industry is likely to play a significant role, and the Fellowship PAC's efforts will be closely watched by lawmakers and industry observers alike.