From the Virgin Islands to the Senate: How does Tether build a power empire?

Recently, Tether’s actions have continuously attracted market attention. Its subsidiary Northern Data announced the sale of a Bitcoin mining division worth $200 million, only to be later revealed as individuals connected to Tether’s leadership directly holding shares in the acquiring companies. Behind these seemingly independent transactions lies a power structure concealed by the loose legal system of the Virgin Islands. This is not just ordinary business activity but a clever way for Tether to build a discreet financial empire.

Virgin Islands: The Perfect Mask for Related-Party Transactions

According to registration records in the Virgin Islands of the UK, the US, and Canada, the three companies acquiring Peak Mining are Highland Group Mining, Appalachian Energy, and 2750418 Alberta ULC. The true controllers behind them are Giancarlo Devasini (Tether co-founder) and Paolo Ardoino (Tether CEO). Notably, Northern Data owns 54% of Tether, and the two entities have a €610 million loan. In this context, selling assets to a company controlled by Tether’s leadership fully qualifies as a related-party transaction.

However, because Northern Data is currently listed on the secondary market in Germany with looser regulations than major markets, the company is not required to disclose the buyer’s identity or record this as a related-party transaction. The true identity only gradually emerges through Virgin Islands filings weeks after the transaction is completed. This loose legal framework in the Virgin Islands becomes an ideal tool for hiding the real power structure behind these deals.

The timing of the transaction is also no coincidence. Peak Mining was sold just days before Rumble (a video platform in which Tether holds 48%) announced its acquisition of Northern Data for $760 million. Seen as a strategic move, Tether divested its volatile mining division before the merger, allowing Northern Data to join Rumble as a pure AI service provider, thereby achieving a higher market valuation. The €610 million loan acts as a coordinating tool: it will be restructured, with half repaid by Rumble in shares and the other half converted into a new secured loan. This multi-layered financial design creates an internal capital circulation ecosystem, privatizing core assets of leadership while consolidating control over the entire structure.

Cantor Fitzgerald and the Infiltration into U.S Power Centers

Beyond internal asset coordination, the relationship between Tether and Wall Street investment bank Cantor Fitzgerald is highly complex. In 2021, to address transparency concerns about USDT reserves, Tether handed over tens of billions of USD in US government bonds to Cantor for management. Howard Lutnick, CEO of Cantor, then became the most trusted guarantor of Tether within the traditional financial system.

This relationship deepened when Lutnick was nominated and confirmed as U.S. Secretary of Commerce. According to a 2024 Wall Street Journal report, Lutnick personally negotiated for Cantor to receive about 5% of Tether’s shares, worth $600 million. This deal faced strong criticism from Senator Elizabeth Warren, who warned of conflicts of interest given the issuer’s frequent involvement in irregular financial activities and the fact that a future Commerce Secretary would hold significant influence.

During the hearing, Lutnick clarified that the final investment was in “convertible bonds,” not direct equity. However, financial insiders are well aware that these convertible bonds essentially grant Cantor the right to convert into shares in the future—effectively a delayed ownership stake, even allowing control rights if necessary. Notably, Lutnick also pledged that after assuming the role of Secretary of Commerce, he would push for more independent audits of stablecoin issuers and increased oversight by U.S. law enforcement agencies. The relationship between Tether, Wall Street, and the U.S. government thus becomes highly multidimensional.

$15 Billion in Profits and Ambitions to Build a Closed Ecosystem

By 2026, Tether is projected to earn $15 billion in profits with a profit margin of up to 99%, according to Nate Geraci, President of The ETF Store. This figure reflects a harsh reality: Tether is no longer just a stablecoin issuer. Its business map now spans crypto payments, digital asset lending, Bitcoin mining, AI, brain-computer interfaces, media platform investments, and even a recent attempt to acquire Italy’s Juventus football club. Tether’s business landscape has far exceeded traditional crypto industry boundaries.

The question is: does this accumulated profit create genuine value for the industry, or does it merely build an internal asset circulation system for its leaders? By separating Northern Data’s assets, merging with Rumble, and establishing strategic relationships with Wall Street via Cantor Fitzgerald, Tether has built a closed business empire. Its leadership not only privatizes core assets but also skillfully positions its empire close to U.S. power centers through major financial institutions and top government officials.

Each of Tether’s business decisions may seem independent, but they are actually interconnected within the same power structure. From the Virgin Islands concealing identities to Wall Street shaping policies, Tether is writing a story of how to build a financial empire extending from the crypto market to the heart of U.S. political power.