Tether-Linked Super PAC Makes First Ad Buy from Firm Co-Founded by Tether's US CEO

The Fellowship PAC, a newly formed political action committee with reported ties to Tether, has made its first major expenditure, spending $300,000 on advertising for a Republican candidate through Nxum Group, a firm co-founded by Bo Hines. Hines serves as the CEO of Tether's US arm and previously worked as an advisor to President Donald Trump. The PAC's first financial disclosure, filed with the Federal Election Commission, reveals the payment to Nxum Group for advertising services on behalf of Georgia Republican Clay Fuller.

Despite its claims of transparency, the Fellowship PAC has not responded to inquiries about its formation, funding, or the payment that may benefit Tether's US CEO and his relative. According to Michael Beckel, an expert at Issue One, a political reform organization, there is no blanket prohibition on self-dealing in political committees, but services must be provided at fair market value. The PAC's advertising effort on behalf of Fuller is not yet clear, but the funds were spent just as Fuller won his special election. The Fellowship PAC's disclosures do not show a significant stockpile of contributions to support other candidates, despite an announcement last year that it would be established with pledges of $100 million.

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 first recipient of financial support, Fuller, is an incoming Republican member of the House of Representatives, and the money spent by the PAC was an independent expenditure. As a candidate, Fuller has not publicly broadcast his position on crypto, but he has the backing of Trump.

The firm paid by the Fellowship PAC, Nxum, was co-founded by Hines, who worked as a leading adviser to Trump on crypto legislative advances. It is unclear whether financial ties remain between Hines and Nxum. The PAC's spending is a drop in the bucket compared to the receipts of the leading crypto super PAC, Fairshake, which has expended millions in early contests.