The Fellowship PAC, a recently established crypto-focused political action committee, has disclosed its first expenditure, with $300,000 going towards advertising for Georgia Republican Clay Fuller through Nxum Group, a firm co-founded by Bo Hines. This development marks the PAC's entry into the US midterm elections, with the payment potentially benefiting Hines, who serves as the CEO of Tether's US arm. The Fellowship PAC has positioned itself as a pro-crypto campaign finance entity, but its ties to Tether have raised questions about its funding and operations. According to Michael Beckel, an expert at Issue One, a political reform organization, there is no blanket prohibition on self-dealing in political committees like the Fellowship PAC, as long as services are provided at fair market value.
The PAC's first advertising effort is in support of Fuller, a Republican candidate for the House of Representatives, but its overall strategy and funding remain unclear, with its current accounts showing no contributions despite an announced pledge of $100 million. The PAC's connections to Tether and its executives have sparked concerns about potential conflicts of interest and the influence of the crypto industry on US politics.