An investigation by federal prosecutors and securities regulators into a proposed merger between a cash-rich blank check company and former President Donald J. Trump’s social media company is getting closer to Mr. Trump. Trump’s end to the deal.
Federal prosecutors have filed grand jury subpoenas regarding Trump Media and Technology Group and “certain current and former TMTG employees,” according to a regulatory filing Friday by Digital World Acquisition, a special-purpose acquisition company that has an initial deal to merge with Trump Media.
Subpoenas are usually issued to a grand jury in connection with a potential criminal investigation. The said deposit The Securities and Exchange Commission also filed a subpoena regarding Trump Media this week.
Just days ago, the digital world She revealed that she, too, had received a grand jury subpoena from federal prosecutors in Manhattan along with similar subpoenas served on her board.
The grand jury subpoenas appear to be linked to earlier SEC subpoenas on Digital World that sought communications regarding potential merger talks with Trump Media representatives ahead of Digital World’s initial public offering in September.
The regulatory filing said Friday that the grand jury subpoenas filed with Trump Media were “pursuing a subset of the same or similar documents requested in the subpoenas for Digital World and its directors.”
The extended investigation threatens to delay the completion of the merger, which would save Mr. Trump’s company and its social media platform, Truth Social, with up to $1.3 billion in capital, as well as a stock market listing.
The SEC . investigation Focus on whether there were serious discussions between the leadership of Digital World and Trump Media before the Special Purpose Acquisition Corporation, or SPAC, went public in September, and if so, why Those conversations were not disclosed in regulatory filings. SPACs, which raise money for an IPO in hopes of finding a candidate for a merger, are not supposed to have an acquisition target in mind when they raise money from investors.
Regulators also requested information about Digital World’s stock trading activity before the merger was announced in October. A few weeks before the announcement of the merger there It was a big boom in trading Digital World Collateral – a type of security that gives the owner the right to buy shares at a specified price.
Trump Media is headquartered in Sarasota, Florida, and is led by Devin Nunes, the former Republican congressman who became CEO this year. the master. Trump, who has a licensing deal with the company, is chairman of the board.
In a statement, Trump Media said it would “continue to cooperate fully with inquiries about our planned merger and will comply with recent subpoenas, none of which have been directed at the company’s Chairman or CEO.”
It is unclear which of the current and former Trump Media employees have received subpoenas.
Truth Social, a Twitter-like platform, remains the company’s core product. the master. Trump, over the past few months, has become a frequent poster on the podium.
This week, he has repeatedly used the platform to criticize the testimony of a former White House aide, Cassidy Hutchinsonbefore Congress convenes in January. 6 commission.
Trump’s media company called Truth Social an alternative to Twitter’s “freedom of speech,” which permanently banned the former president from using its platform after January 11. 6, 2021, the attack on the Capitol.
Maggie Habermann Contribute to the preparation of reports.
“Explorer. Unapologetic entrepreneur. Alcohol fanatic. Certified writer. Wannabe tv evangelist. Twitter fanatic. Student. Web scholar. Travel buff.”
