$TRUMP Ally’s Crypto Connections in El Salvador Under Scrutiny
Commerce Chief’s Ties to Tether
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Former Commerce Secretary Howard Lutnick, closely linked to El Salvador through business interests, has come under scrutiny for his firm Cantor Fitzgerald’s stake in the crypto giant Tether. The company reportedly holds a 5% stake in Tether and manages much of its $134 billion in assets—mostly U.S. Treasuries.
Deepening Links with Bukele's Regime
Tether relocated to El Salvador in 2024, taking advantage of crypto-friendly policies and tax breaks. The firm has since invested heavily in real estate and infrastructure projects including a proposed 70-storey HQ in San Salvador. Tether figures have close ties to President Nayib Bukele’s inner circle.
Rumble Deal Raises Eyebrows
Cantor also facilitated a $775M investment from Tether into Rumble, a conservative video platform. Just after the deal, Rumble secured a cloud services contract with Bukele’s government, emphasizing “shared values.” Despite heavy losses, Rumble now counts Tether as its largest shareholder.
Regulatory Concerns
Tether, long dogged by accusations of inadequate reserves and involvement in illicit finance, has faced multiple investigations. A 2021 settlement with U.S. regulators found it misrepresented its backing for USDT. Lutnick has defended Tether, claiming to have personally verified its holdings.
Political Fallout
During Lutnick’s confirmation hearings, Senator Elizabeth Warren questioned his judgment given his deep ties to Tether, which she described as a “facilitator of criminal activity.” Lutnick disclosed Cantor’s convertible bond deal worth $600M and personal holdings in Rumble.
Expanding Influence
Several former Rumble executives, including David Sacks and Ethan Fallang, have transitioned into Trump administration roles. Prominent officials, including Dan Bongino and Tulsi Gabbard, also hold stakes in Rumble, raising questions about conflicts of interest as crypto policy is shaped.
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