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

A recently launched cryptocurrency industry political action committee, known as Fellowship PAC, has begun its operations with an $11 million backing. The committee has already allocated $3 million for advertising services through Nxum Group, a firm co-founded by Tether US CEO Bo Hines. According to filings with the Federal Election Commission, the majority of the committee's funding, $10 million, came from Cantor Fitzgerald, while $1 million was provided by Anchorage Digital, a crypto bank. The initial advertising expenditure of $3 million will be utilized to support Republican candidates in congressional and gubernatorial elections. Nxum Group, which was founded by Hines, his father, and another partner, will handle the advertising services. Although Fellowship PAC has been associated with Tether since its inception, the bulk of its funding originated from Cantor Fitzgerald, a New York-based financial services giant that manages Tether's stablecoin reserves. A representative from Tether US did not immediately respond to a request for comment, and a Cantor spokesperson declined to discuss their involvement with the committee. The committee's treasurer is an executive at Cantor Fitzgerald. So far, Fellowship PAC has allocated $300,000 to support Clay Fuller, a new member of the U.S. House of Representatives; $850,000 to back Nate Morris for a U.S. Senate seat in Kentucky; and $350,000 to support incumbent Nebraska Senator Pete Ricketts. The committee's filings also disclosed that Nxum Group received $3 million in disbursements for advertising services. Prior to this, Nxum Group did not have a significant track record in serving PACs or campaigns, with its primary claim to fame being a $1 million donation of billboard ads to MAGA Inc. in 2024. When Fellowship PAC was announced, it claimed to have $100 million in pledged backing and vowed to champion transparency in supporting pro-crypto candidates. However, this level of funding has yet to materialize. Anchorage Digital, which contributed to the committee, described its donation as an investment in the U.S. crypto policy process, stating that it is part of their broader approach to advancing regulatory clarity for digital assets in the United States.