A newly formed super PAC, The Fellowship, has disclosed its first expenditure, revealing a $300,000 ad buy from Nxum Group, a firm co-founded by Tether US CEO Bo Hines. The PAC, which claims to be rooted in transparency, has ties to Tether, although the company has declined to confirm the connection.
The ad buy was made on behalf of Georgia Republican Clay Fuller, who recently won a special election. According to campaign finance rules, setting up a super PAC and paying for services is not prohibited as long as the services are provided at fair market value. The Fellowship PAC's activities have raised questions about its funding and potential conflicts of interest, particularly given its ties to Tether and its CEO.
The PAC's current accounts show no contributions, despite an earlier announcement 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 the Fellowship PAC. The PAC's first recipient of financial support, Fuller, is an incoming Republican member of the House of Representatives and has not publicly stated his position on crypto.
The money spent by the Fellowship super PAC was an independent expenditure, meaning it had to be handled without strategizing with Fuller's campaign. The firm paid by the Fellowship PAC, Nxum, was co-founded by Hines, who previously worked as a leading advisor to President Trump on crypto legislative advances. 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 are being watched closely, particularly given the potential impact of the crypto industry on future legislation.
With the US midterm elections underway, the PAC's spending is likely to be scrutinized, and its ties to Tether and its CEO may raise further questions about transparency and conflicts of interest.