A newly formed super PAC, The Fellowship, has made its first expenditure, 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 declined to confirm the connection. The expenditure was made to Nxum Group, a company co-founded by Hines, who is also a former advisor to President Donald Trump. The PAC's first financial support went to Georgia Republican Clay Fuller, who recently won a special election.
The Fellowship PAC has not yet disclosed its funding sources, despite announcing last year that it would be established with pledges of $100 million. The PAC's disclosures do not show any significant contributions, and its current accounts are still at zero. The PAC's chairman, Jesse Spiro, is the vice president of regulatory affairs for Tether's US arm, and the PAC has begun endorsing Republican politicians seeking House and Senate seats. The Fellowship PAC's first expenditure has raised questions about potential self-dealing, as the payment may benefit the Tether US CEO and his relative.
However, according to Michael Beckel, a political reform expert, setting up a super PAC and paying oneself for services is not against US campaign-finance rules, as long as the services are provided at fair market value.