US Secretary of Commerce Howard Lutnick is personally assisting with Tether’s equity fundraise, according to Swan Bitcoin CEO Cory Klippsten.
Citing a tip from a national news reporter, Klippsten claims that Lutnick is simultaneously running the Department of Commerce (DOC) and drumming up support for the stablecoin giant’s $20 billion open equity round.
On September 23, Bloomberg reported that Tether was trying to sell approximately 3% equity in a $15-20 billion private placement.
If successful, the raise could value Tether at $500 billion, putting it on a par with the likes of Exxon Mobil and Mastercard.
Equity fundraises typically take a few weeks to fill and close, so the round could presumably remain open today.
Donald Trump nominated Lutnick to join his Presidential Cabinet on November 19, 2024. He passed Senate confirmation on February 18 and was sworn in on February 21, 2025.
Before joining Trump’s administration, Lutnick was a bond manager for Tether at Cantor Fitzgerald. To avoid Congressionally prohibited conflicts of interest, Lutnick divested control of Cantor to his son, Brandon Lutnick, who is also a staunch defender of Tether.
Howard Lutnick on Tether: ‘They have the money’
At a time when many people asked about the quality and quantity of reserves backing Tether’s then-$95 billion USDT stablecoin, Lutnick defended the company publicly.
“They have the money they say they have,” Lutnick swore on Bloomberg TV in January 2024.
“There has always been a lot of talk — do they have it or not? — and I’m here with you guys, and I’m telling you, we’ve seen it, and they have it.”
If this is the case, why exactly does Tether need to raise funds?
The first reason likely involves the courts.
As of June 30, Tether International, S.A. de C.V. is a defendant in two civil litigation proceedings, one of which involves victims of Celsius upset with Tether’s involvement in Alex Mashinsky’s collapsed enterprise.
At its core, the suit, which could involve as much as 57,428 BTC — potentially worth nearly $7 billion at today’s price — involves a margin call dispute.
Celsius victims claim Tether improperly rushed a 10-hour contractual waiting period after its margin call to liquidate Celsius’ digital assets held as collateral, at allegedly below-average prices during a panic.
Read more: Commerce Secretary Lutnick wants US economy on blockchain for some reason
For years, Tether promised to publish a full accounting audit that would assure the public about the clear sources of the company’s stablecoin reserves and its lack of encumbrances.
Even Lutnick agreed that Tether should submit to an audit by a US accounting firm.
Unfortunately, and despite executives’ repeated promises, Tether has never published any formal audit. Instead, it publishes attestations about assets existing in its accounts during snapshots in time — regardless of their originations or obligations.
Interestingly, Lutnick was Jeffrey Epstein’s neighbor on East 71st Street in Manhattan. The official story from the DOC is that Lutnick “had no personal relationship, contact, or direct dealings” with Epstein.
