1.8 billion settlement fund + permanent exemption from audits—this kind of move would have already triggered a rug pull warning in DeFi.

A U.S. federal judge has ordered Trump and his family’s attorneys to provide detailed explanations regarding a settlement agreement involving the IRS. The agreement sets up a fund of approximately $1.8 billion to compensate victims who claim they were harmed by the judicial system being “weaponized.” The judge said there are allegations of fraud and that they must explain why the settlement can resolve the lawsuit and whether it is lawful. The fund was established by the Department of Justice under the settlement framework, sparking widespread controversy. In addition, the parties appear to have reached a separate special settlement to end a $10 billion lawsuit; the agreement provides that the IRS will permanently refrain from pursuing audit investigations into Trump and his family’s past filings. The court has not yet ruled on legality and requires further explanations.