Overview: This article presents details regarding the ongoing investigation on Truth Social by the US Securities and Exchange Commission.
According to a report filed with the SEC and originally reported by the New York Times, the deal between a special purpose acquisition company (SPAC) and former President Donald Trump’s new social media company is being probed by the US Securities and Exchange Commission and other agencies.
The SEC has requested documents about meetings of the SPAC’s board of directors, “policies and procedures relating to trading,” identification of certain investors, and copies of communication between DWAC and TMTG, according to a document from Digital World Acquisition Corp. (DWAC), the SPAC that intends to merge with Trump’s new media venture, Trump Media & Technology Group Corp. (TMTG).
Trump first declared on October 20 that he was starting “TRUTH Social,” a new social media company under the TMTG umbrella.
“We live in a world where the Taliban has a huge presence on Twitter, yet your favorite American President has been silenced,” Trump said in his statement announcing the launch. “Everyone asks me why doesn’t someone stand up to Big Tech? Well, we will be soon!”
Truth Social case details
According to the filing, the probe began in early November. Following the October 20 merger announcement, the Financial Industry Regulatory Authority (FINRA), a private regulator, began looking into the collaboration in late October.
Neither FINRA nor the SEC had uncovered any evidence of misconduct, according to the business, which stated it was cooperating with both regulators.
The letter adds that “the investigation should not be regarded as a signal that FINRA has decided that any violations of Nasdaq rules or federal securities laws have occurred.” “The investigation does not mean that the SEC has found that anyone broke the law or that the SEC has an unfavourable opinion of DWAC or any person, event, or security,” according to the SEC’s request.
Trump’s digital media firm, TRUTH Social, and Digital World Acquisition Corp. revealed that they were seeking roughly $1 billion from investors, prompting the probe.
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Reps. Marjorie Taylor Greene of Georgia and Larry Bucshon of Indiana, both Republicans, have invested in Digital World Acquisition Corp.