A newly formed crypto-focused super PAC, The Fellowship, has made its first major expenditure, spending $300,000 on advertising for a Republican congressional candidate through a firm tied to Tether's US CEO. The PAC, which has been linked to Tether, made the payment to Nxum Group, a company co-founded by Bo Hines, who now serves as the chief executive of Tether's US arm.
The expenditure was made on behalf of Georgia Republican Clay Fuller, who recently won a special election to the US House of Representatives. The Fellowship PAC, which claims to be committed to transparency, has not disclosed its funding sources, but it has been reported to have ties to Tether. The PAC's first major expenditure has raised questions about potential self-dealing, as Hines and his father are both involved with Nxum Group. However, campaign finance experts note that self-dealing is not necessarily prohibited in US campaign finance law, as long as services are provided at fair market value.
The Fellowship PAC's activities come as the crypto industry is increasingly seeking to influence US politics and regulatory policy. The PAC has announced its support for several Republican candidates, including Fuller, and has stated that it will back advocates of emerging digital assets technology.
The PAC's funding sources and expenditures will be subject to federal disclosure requirements, which may shed more light on its activities and ties to Tether and other crypto industry players.