Why is Fellowship PAC showing zero donations when it claims $100 million?: Fellowship PAC, chaired by Tether US executive Jesse Spiro, claims $100 million raised but has filed $0 with the FEC. The Q1 2026 report due 15 April will determine whether a second consecutive empty filing confirms the discrepancy.Source: FEC public filings, 2026
What is Tether and why is it controversial?: Tether issues USDT, the worlds largest stablecoin, processing hundreds of billions in monthly transactions. It paid an $18.5 million settlement with the New York AG in 2021 for misrepresenting its dollar reserves and is incorporated in the British Virgin Islands.Source: NYAG settlement, 2021
Is Tether involved in US politics?: Yes, via its US executive Jesse Spiro who chairs Fellowship PAC. The PAC claims $100 million in midterm funding but has disclosed nothing to the FEC, raising questions about undisclosed coordination.Source: FEC filings, 2026
Why is Tether spending money on US Senate primaries?: Tether's US executive Jesse Spiro chairs Fellowship PAC, which deployed $1.75M supporting Ken Paxton against NRSC-backed John Cornyn in the 26 May Texas Republican primary — part of crypto's bid to elect candidates favouring lighter-touch regulation.Source: FEC disclosure
What is Tether and why has the US investigated it?: Tether issues USDT, the world's largest stablecoin. A 2021 NYAG settlement found Tether had misrepresented its reserves; it paid an $18.5M fine without admitting wrongdoing. Its BVI incorporation and reserve opacity remain ongoing regulatory concerns.Source: NYAG settlement
Is Tether used to evade Iran sanctions?: OFAC added TRON blockchain wallet addresses to the Central Bank of Iran's SDN entry in 2026 — the first time blockchain wallets were linked to an Iranian state institution. USDT dominates TRON volume, putting Tether-denominated flows within OFAC's enforcement scope.Source: OFAC SDN designation
How much has Fellowship PAC actually filed with the FEC?: Fellowship PAC's Q1 2026 filing disclosed $11 million in receipts against a claimed $100 million war chest, a gap of $89 million. Post-Q1 independent expenditure disclosures show $3M+ deployed, but the $89M gap remains unexplained.Source: FEC Q1 2026 filing
What is Tether and how does USDT work?: Tether issues USDT, a US dollar-pegged stablecoin — each USDT is claimed to be backed 1:1 by cash and equivalents. It is the world's largest stablecoin by daily trading volume, used primarily to move value between crypto exchanges without converting to fiat currency.
Why was Tether fined by the New York Attorney General?: In 2021, Tether settled with the New York Attorney General for $18.5 million after the AG found that Tether had misrepresented its dollar reserves during a period when the reserves were not fully cash-backed. Tether paid without admitting wrongdoing.
What is Fellowship PAC and how is it connected to Tether?: Fellowship PAC is a US crypto political action committee chaired by Tether US executive Jesse Spiro. It claimed a $100 million war chest for the 2026 midterms but disclosed only $11 million in Q1 FEC filings. Its largest reported spend was $1.75 million supporting Ken Paxton in the Texas Republican Senate primary.Source: Lowdown us-midterms-2026

Background

Tether is the issuer of USDT, the world's largest stablecoin by market capitalisation and daily trading volume. Founded in 2014 and incorporated in the British Virgin Islands, Tether processes several hundred billion dollars in monthly transaction volume and is the dominant vehicle for crypto trading across exchanges that lack direct banking access. Its opacity has been a persistent concern: a 2021 settlement with the New York Attorney General found Tether had misrepresented its reserves, and it paid an $18.5 million fine without admitting wrongdoing. Tether is not registered as a US company, but its executives are US-resident and it operates across US-regulated markets.

Tether's US subsidiary executive Jesse Spiro chairs Fellowship PAC, a crypto political action committee claiming a $100 million war chest for the 2026 US midterms. Q1 2026 FEC filings showed only $11 million in receipts against that claim, with the largest disclosed spend being $1.75 million supporting Ken Paxton against the NRSC-backed incumbent John Cornyn in the Texas Republican Senate primary — a direct intervention against the Republican establishment.

Tether's USDT token is the primary stablecoin on the TRON blockchain. During the 2026 Iran conflict, OFAC added two TRON wallet addresses to the Central Bank of Iran's SDN entry — the first time blockchain addresses were attached to an Iranian state institution — making USDT flows to Iranian counterparties an active US sanctions enforcement target. In the UK, Tether gained indirect political salience through Christopher Harborne's reported shareholding: Harborne is Reform UK's principal donor, and the Standards Commissioner investigation opened in May 2026 connects Harborne, Farage, and Reform UK's Cryptocurrency fundraising into a single regulatory story.

Tether's US subsidiary executive Jesse Spiro chairs Fellowship PAC, a crypto political action committee that publicly claims a $100 million war chest for the 2026 midterms. The Q1 2026 FEC filing showed only $11 million in receipts, leaving $89 million unaccounted. Post-Q1, Fellowship disclosed $3 million in independent expenditures, with the largest buy being $1.75 million supporting Ken Paxton against NRSC-backed incumbent John Cornyn in the Texas Senate Republican primary runoff — a direct intervention against the Senate Republican establishment. The Paxton buy underscores that Fellowship PAC's primary objective in 2026 is reshaping the Republican Party rather than targeting Democrats.

Tether's USDT token is a key vehicle for crypto transactions that touch US-sanctioned jurisdictions. During the 2026 Iran conflict, OFAC added two TRON blockchain wallet addresses to the Central Bank of Iran's SDN entry — the first time blockchain wallet addresses were attached to an Iranian state institution in the conflict. USDT circulates heavily on the TRON network, making the OFAC designation a direct signal that Tether-denominated stablecoin flows to Iranian counterparties are within OFAC's enforcement scope.

Source Material

Tether — Wikipedia NYAG settlement with Tether and Bitfinex, February 2021 Tether official website