Senators Sound Alarm: Binance’s $2B Trump-Era Deal Sparks Probe Demand

Washington sharpens its knives as bipartisan pressure mounts over the crypto giant’s controversial transaction. The ghost of 2024’s bull market haunts today’s regulatory crackdown.

Behind the subpoenas: A $2 billion backchannel deal during the Trump administration now draws fire from both sides of the aisle. Senators claim Binance ’played the DC game’ with all the subtlety of a Bitcoin bull run.

Regulators circle as the exchange faces its Lehman moment—because nothing says ’financial innovation’ like repeating 2008’s mistakes with blockchain buzzwords.

Binance’s rocky past 

Binance previously admitted to violating U.S. anti-money laundering and sanctions laws, agreeing to a $4.3 billion settlement and pledging to withdraw from the U.S. market. CZ resigned as CEO and served four months in U.S. custody as part of the plea deal reached with the Treasury Department, the Department of Justice, and the CFTC.

The senators warned that Binance’s use of a Trump-affiliated stablecoin “raises even more urgent questions” about the exchange’s compliance. They also cited reports that Zhao had lobbied for a potential presidential pardon and that the Trump family discussed acquiring a stake in Binance.US.

Lawmakers are requesting updates by May 21 on Binance’s adherence to its plea agreement, its timeline for leaving the U.S., and any communication with federal agencies regarding USD1 or pardons.

The letter comes as Senate Democrats recently blocked a stablecoin bill, citing the lack of provisions to bar Trump and other senior officials from profiting from crypto ventures while in office. The bill’s future remains uncertain, but discussions are ongoing.