Tether-Linked Super PAC Makes First Ad Purchase from Firm Co-Founded by Tether's US CEO

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 congressional candidate through a firm co-founded by Tether's US CEO, Bo Hines. The PAC, which has ties to Tether, made the payment to Nxum Group, a company Hines co-founded with his father and another partner. The advertising effort is in support of Georgia Republican Clay Fuller, who recently won a special election and will need additional campaign support for the upcoming primary and general elections.

The Fellowship PAC's first major expenditure has raised questions about potential self-dealing, as Hines is both the CEO of Tether's US arm and a co-founder of Nxum Group. However, according to Michael Beckel, a political reform expert, there is no blanket prohibition on self-dealing in political committees, as long as services are provided at fair-market rates. The PAC's disclosures do not yet show a significant stockpile of contributions, despite an earlier announcement that it would be established with pledges of $100 million. The Fellowship PAC has stated that it will support candidates who advocate for emerging digital assets technology and has begun listing endorsements for Republican politicians on its social media feed.

The PAC's first recipient of financial support, Fuller, has not publicly taken a stance on crypto and does not have a grade from the advocacy group Stand With Crypto. The firm paid by the Fellowship PAC, Nxum Group, has no federal record as a regular service provider for political efforts, but it did contribute $1 million in billboard advertising to support Trump in 2024. The PAC's treasurer, Mitchell Nobel, is an executive at Cantor Fitzgerald, a firm that manages assets for Tether's global operation. The Fellowship PAC's activities have raised questions about its transparency and potential conflicts of interest, particularly given its ties to Tether and the fact that its CEO, Bo Hines, is a co-founder of the firm that received the payment.