- Commerce Secretary Howard Lutnick is reportedly helping with Tether’s $20 billion equity fundraising effort.
- Lutnick recently left his role as a bond manager for Tether at Cantor Fitzgerald to serve in the U.S. Cabinet.
- Tether aims to sell about 3% of its equity in a private placement, potentially valuing the company at $500 billion.
- The fundraising move comes as Tether faces civil litigation, including a case tied to the collapse of Celsius.
- Tether has never published a full audit of its reserves despite repeated promises, instead offering attestations.
Howard Lutnick, the Secretary of Commerce, is directly involved in Tether’s ongoing equity fundraising initiative. According to Swan Bitcoin CEO Cory Klippsten, Lutnick is assisting Tether as the company seeks to raise $20 billion in new capital.
Recent reports indicate that Tether is selling roughly 3% of its ownership through a private placement. This effort could value the stablecoin provider at around $500 billion—comparable to major corporations like Exxon Mobil and Mastercard.
Bloomberg previously reported on September 23 that Tether was targeting a $15–20 billion raise. Equity fundraising rounds of this size often remain open for several weeks. If successful, Tether’s overall valuation would reach unprecedented levels for the crypto industry.
“They have the money they say they have,” Lutnick said in a January 2024 interview with Bloomberg TV, addressing skepticism over Tether’s reserves. He has maintained that Tether’s assets are sufficient to back its USDT stablecoin, which has a circulating supply of $95 billion.
Prior to his Cabinet position, Lutnick managed Tether’s bonds at Cantor Fitzgerald. To comply with congressional conflict-of-interest rules, Lutnick transferred control of the firm to his son, Brandon Lutnick, a noted supporter of Tether.
Tether’s fundraising takes place amid ongoing legal challenges. As of June 30, Tether International S.A. de C.V. was a defendant in two civil lawsuits, including one led by former Celsius users. These plaintiffs allege that Tether improperly liquidated Celsius’ digital assets—worth roughly $7 billion—after a margin call, impacting the value of those assets during the market downturn.
Tether has promised for years to conduct a full U.S.-based audit of its reserves, but has not published one to date. Instead, the company provides attestations, which are declarations about its assets at a specific point in time. Even Lutnick has stated that Tether “should submit to an audit” by an American accounting firm.
The Department of Commerce has clarified that Lutnick had no personal relationship, contact, or direct dealings with Jeffrey Epstein, despite being neighbors in Manhattan.
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