As Lutnick Sold Cantor to His Children, Tether Gave Them a Loan

Last October, US Commerce Secretary Howard Lutnick sold his multibillion-dollar ownership interest in Cantor Fitzgerald, the financial services company he led for more than three decades, to trusts benefiting his four children — a move designed to comply with federal ethics rules.

At about the same time, one of the trusts did something unusual. “Dynasty Trust A,” which benefits all four children, borrowed an undisclosed sum from Tether, the stablecoin issuer. Tether has helped Cantor Fitzgerald’s assets skyrocket to new heights on the strength of a 2024 investment, and its foreign owners have sought more favorable US regulatory ...