Crypto PAC Secures $11 Million in Funding, Partners with Tether US CEO-Founded Ad Firm

A recently launched crypto-focused political action committee, Fellowship PAC, has commenced operations with an $11 million investment, allocating $3 million towards advertising services through Nxum Group, a firm co-founded by Tether US CEO Bo Hines. The super PAC is concentrating its support on Republican candidates vying for Congressional and gubernatorial positions, having received $10 million from Cantor Fitzgerald and $1 million from crypto bank Anchorage Digital, as per Federal Election Commission filings. The advertising expenditure has been channeled through Nxum Group, which was founded by Hines, his father, and another partner. Although Fellowship PAC has been closely associated with Tether since its inception, the primary funding source is Cantor Fitzgerald, a New York-based financial services giant that handles Tether's stablecoin reserves. A representative from Tether US did not respond to a request for comment, while a Cantor spokesperson declined to discuss their involvement with the super PAC. Initially, Fellowship PAC announced a $100 million war chest, rivalling the prominent crypto PAC, Fairshake. The PAC's treasurer is an executive at Cantor, and it has thus far allocated $300,000 to support Clay Fuller, $850,000 to back Nate Morris, and $350,000 to support Pete Ricketts, according to Federal Election Commission filings. Nxum Group has received $3 million in disbursements for advertising services, despite having a limited track record in serving PACs or campaigns. Upon its formation, Fellowship PAC pledged $100 million in support and advocated for transparency in promoting pro-crypto candidates, although this level of backing has not yet materialized. Anchorage Digital, the first crypto-native bank to obtain a US federal charter, views its contribution as an investment in the US crypto policy process, stating that it is part of their bipartisan approach to advancing regulatory clarity for digital assets in the United States.