Former President Donald Trump’s new social media company is under investigation from the federal government.
Trump revealed in October that he would take Trump Media & Technology Group and TRUTH Social, his new social media platform, public through a special purpose acquisition company (SPAC) merger. However, according to CNBC, the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) is requesting information “regarding stock trading and communications with Trump’s firm before the deal was announced.”
CNBC reported:
The investigations by the SEC and the Financial Industry Regulatory Authority were disclosed in an 8-K filing with the SEC by Digital World Acquisition Corp., the special purpose acquisition company on track to merge with Trump Media & Technology Group…
The filing comes just two days after Trump Media & Technology Group and DWAC said the SPAC had reached agreements to obtain $1 billion in committed capital from a “diverse group of institutional investors” to be received when the merger is consummated. The identities of those investors in that so-called PIPE, or private investment in public equity, were not publicly disclosed.
via joemiller