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The intricate connections between high-profile figures in the Trump administration and cryptocurrency ventures are drawing increasing scrutiny. At the center of recent investigations is Howard Lutnick, Trump’s commerce secretary, whose family firm Cantor Fitzgerald holds substantial stakes in the controversial crypto company Tether. With El Salvador serving as a haven for crypto-friendly policies under authoritarian leader Nayib Bukele, the situation raises ethical concerns. The growing entanglement of U.S. political power, crypto firms, and foreign governments—especially involving firms like Rumble and Tether—has prompted alarm among regulators, lawmakers, and watchdogs.
I. Lutnick’s Business Ties to El Salvador and Tether
1. A Powerful Ally in a Crypto Haven
Howard Lutnick, formerly CEO of Cantor Fitzgerald, has been linked to major crypto dealings in El Salvador, a nation that offers virtually unrestricted freedom to digital currency firms. The Bukele regime has allowed these companies to operate without tax or regulation, creating fertile ground for firms like Tether, which relocated its headquarters there in early 2024.
2. Cantor’s Stake in Tether and Role in U.S. Treasury Holdings
Cantor Fitzgerald reportedly holds a 5% equity stake in Tether through a convertible bond, a relationship that also includes managing most of Tether’s $134 billion in U.S. Treasury assets. This deep involvement positions Cantor to earn millions annually in fees and allows Tether to maintain liquidity despite its troubled history with regulatory authorities.
II. Rumble Deal and the El Salvador Connection
1. Strategic Investments Aligned with Trump Interests
Cantor played a critical role in a $775 million investment into Rumble, a video-sharing platform favored by the MAGA movement. Shortly after the deal closed in February 2024, Rumble entered into a cloud services agreement with El Salvador’s government, citing mutual interests in “freedom” and “innovation.”
2. Crypto Expansion into Salvadoran Real Estate
Tether’s relocation to El Salvador has included acquiring significant real estate in downtown San Salvador. High-profile figures like founder Giancarlo Devasini and CEO Paolo Ardoino have reportedly purchased valuable properties and even gained Salvadoran citizenship—suggesting deep integration into the regime’s crypto-friendly policies.
III. Tether’s Troubled Regulatory History
1. A Long List of Legal Issues
Tether has faced at least 19 U.S. investigations over allegations including money laundering, sanctions evasion, and fraud. In 2021, Tether and its sister company Bitfinex paid over $60 million in settlements to the CFTC and New York Attorney General. Regulators accused them of misrepresenting the stability of their reserves backing the USDT stablecoin.
2. Concerns over Stablecoin Backing
USDT, Tether’s main product, claims to be backed 1:1 with U.S. dollars or equivalent assets. However, investigations revealed that reserves were sometimes held in unreliable commercial paper or commingled with Bitfinex’s customer funds, challenging the claim of full backing and sparking fears over financial instability in the crypto market.
IV. Influence over U.S. Crypto Policy
1. Political Leverage and Favorable Regulatory Environment
Emails and testimonies suggest Tether’s leadership expected Lutnick to use his political clout to reduce regulatory scrutiny. In January 2024, Senator Elizabeth Warren highlighted these concerns in a letter questioning whether Lutnick could separate his public duties from private financial interests.
2. Cantor’s Key Role in Stabilizing Tether
When Tether lost access to international banking in 2021, it turned to Lutnick for help. After personally inspecting the company’s reserves, Lutnick agreed to work with Tether and provide asset management services through Cantor. This move helped Tether weather a potential financial crisis and re-establish some credibility in Washington.
V. Rumble, Ideology, and Political Tech
1. The Right-Wing Media Ecosystem
Rumble positions itself as an “anti-woke” video platform and has attracted content creators rejected by mainstream platforms. With backing from venture capitalists like Peter Thiel and JD Vance’s Narya Capital, Rumble has aligned itself with Trump’s media vision and entered into strategic partnerships, including with Truth Social.
2. Tether’s Interest in Rumble Explained
Despite Rumble’s poor financial performance—posting growing losses despite rising revenue—Tether invested heavily, becoming the largest shareholder. Analysts suggest the investment serves ideological and strategic purposes rather than financial gain, especially given Rumble’s close ties to Trump-aligned media initiatives.
VI. Ethics, Oversight, and Future Implications
1. Lack of Disclosure and Oversight Concerns
Several Trump administration officials, including Lutnick and “crypto czar” David Sacks, have held or continue to hold Rumble shares. Ethics agreements require divestment, but limited transparency and a lack of disclosure have raised red flags about potential conflicts of interest.
2. El Salvador’s Role in Crypto Geopolitics
The Bukele regime’s willingness to offer favorable treatment to crypto firms—described by experts as a “pay-to-play” environment—creates further ethical concerns. Partnerships with figures like Devasini, Keiser, and Herbert suggest that El Salvador is being used as a crypto hub by U.S. political and corporate elites seeking regulatory relief and tax benefits.
Conclusion
The entanglement of Trump administration officials, crypto companies like Tether, and the government of El Salvador reveals a complex web of political, financial, and ethical dilemmas. From real estate deals and digital asset management to cloud infrastructure and media ownership, the deepening relationship between U.S. power players and Salvadoran crypto ventures raises questions about accountability, transparency, and national security. As cryptocurrency becomes increasingly interwoven with geopolitics, it’s vital that policymakers strengthen oversight to prevent misuse of power and protect democratic institutions.
