Sen. Richard Blumenthal (D-Conn.) has given Binance, Tether and two Trump-linked crypto firms until Jan. 4, 2027 to produce records for ongoing Senate investigations.
Blumenthal, who is set to chair the Senate Permanent Subcommittee on Investigations (PSI) in January, is examining illicit cryptocurrency activity, potential conflicts of interest and the Trump administration's financial ties to crypto firms.
As incoming PSI chair, he would have subpoena powers that could force companies to produce records.
The investigation's key developments include:
- Binance: Blumenthal opened an inquiry in February into alleged Iran-related sanctions evasion. The crypto exchange rejected the allegations in March.
- Tether (CRYPTO: USDT): A September Senate minority staff report found that 84% of 846 Iran-linked wallets targeted by sanctions or seizures used USDT almost exclusively.
- Iran-linked funds: Tether said it supported freezes involving almost $550 million in Iran-linked assets during 2026.
- Political connections: An Oct. 22 letter requested records about Tether's relationship with consulting firm Nxum, co-founded by former White House crypto council director Bo Hines. The letter cited reports that Tether paid Nxum more than $6 million.
Why Are Trump's Crypto Ventures Facing Scrutiny?
World Liberty Financial (CRYPTO: WLFI) and Fight Fight Fight LLC, the company managing Official Trump (CRYPTO: TRUMP), face a separate investigation launched in May 2025.
Blumenthal is examining allegations that Trump-linked crypto ventures may have facilitated transactions involving foreign nationals facing prosecution, accepted foreign government investments or violated federal ethics requirements.
The senator also hosted a July 2026 forum featuring testimony from TRUMP investors who reported significant losses.
