A newly formed super PAC, The Fellowship, has made its first financial contribution, spending $300,000 on advertising for a Republican candidate through a firm tied to Tether's US CEO, Bo Hines. The PAC, which claims to be rooted in transparency, has been linked to Tether, although the company has not confirmed the connection. The advertising effort is in support of Georgia Republican Clay Fuller, who recently won a special election.
The PAC's first expense filing to the Federal Election Commission indicates that the payment was made to Nxum Group, a company co-founded by Hines, his father, and a third partner. While it is not against US campaign-finance rules for a super PAC to pay for services provided by a company affiliated with its executives, the transaction has raised questions about the PAC's transparency and potential conflicts of interest. The Fellowship PAC was announced last year with pledges of $100 million, but its current accounts show no contributions, and its disclosures do not demonstrate a significant stockpile of funds to support other candidates.
An outside spokesperson for Tether stated that Tether International has no affiliation or oversight over Fellowship PAC, but did not respond to further questions about Tether US. 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 has begun listing endorsements for Republican politicians on its social media feed, stating that it will support candidates who recognize the importance of fostering economic growth and reinforcing the US as a global leader in next-generation financial infrastructure.