Posted on: 07/04/2022 Posted by: admin Comments: 0

Truth Social, Donald Trump’s new social networking platform, is reportedly under investigation by a federal grand jury.

A grand jury in New York issued subpoenas to Digital World Acquisition Corp., and the stock fell about 10% on Monday.

 

Ongoing SEC investigation into whether Digital World breached regulations by having serious negotiations about buying Trump’s firm beginning early last year before Digital World’s initial stock sale to the public in September, only weeks before its statement that it would be purchasing Trump’s company.

A year after being barred from Twitter, Facebook, and YouTube, Donald Trump has announced his newest project – TMTG (Truth Social). This is a new social media platform that he will use to rally his supporters and battle Big Tech’s restrictions on free speech. Just last month, Digital World took ownership of this platform for $1 billion dollars.

In order to assist with oversight that supports the SEC’s critical purpose of safeguarding retail investors, TMTG will create a platform for people across the country to post opinions about stocks without fear of censorship or retribution.

The latest investigation might make it more difficult for Trump to raise money for his social media firm. Dwarf investors promised the firm last year that they would inject $1 billion into its operations, but Digital World has yet to finalise its takeover.

 

Announcing a proposal to acquire Trump’s firm in October sparked a surge in Digital World’s stock price to more than $100 per share. Monday’s closing price was $25.16.

 

In the last two years, the popularity of investing in special-purpose acquisition companies (SPACs), such as Digital World, has skyrocketed.

 

Such “blank-check” organisations are corporations that have no activities but promise to acquire a company in the future. However, if the company hasn’t previously lined up potential acquisition targets, it may offer shares to the public without the typical regulatory disclosures and delays.

 

The Southern District of New York’s grand jury has subpoenaed each member of Digital World’s board of directors, the company stated in a regulatory filing on Monday.Documents pertaining to ARC Global Investments and Rocket One Capital are also sought by the grand jury and the SEC in connection with their investigations.

 

Due diligence on Trump Media and conversations with Digital World’s underwriter and financial advisor in its first public offering are among the requested records, according to the SEC disclosures.

 

Bruce Garelick, chief strategy officer of Rocket One, resigned from his position as a board member of Digital World on Monday

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