A company connected to Trump’s attempt to make a social media alternative is under investigation by federal regulators.
Digital World Acquisition Corp., a SPAC partnered with the Trump Media & Technology Group, said in a public filing on Monday that it received inquiries from the Securities and Exchange Commission and the Financial Industry Regulatory Authority in recent weeks.
The company stated that it had received “certain preliminary, fact-finding inquiries” from both regulators and that it would comply with these inquiries from both federal agencies.
TRUMP SOCIAL MEDIA COMPANY RAISES $1 BILLION IN INVESTMENTS
The company said it received an inquiry in late October and early November related to a review of trading that occurred before the company’s Oct. 20 announcement that it would merge with Trump Media & Technology Group. The company also received requests for details and documents in early November from the SEC.
While some may jump quickly to conclusions about the merits of Digital World Acquisition Corp.’s business initiative, the company notes that SEC and FINRA inquiries do not necessarily mean that the company has broken any rules, merely that they are seeking information about the business goings-on.
The SEC declined to comment after the Washington Examiner reached out for additional information.
The public filing arrives days after Trump Media & Technology Group’s Saturday announcement that it had received more than $1 billion in investments. According to the group, the company has entered into “subscription agreements” with Digital World Acquisition Corp., which will transfer its funding to the company upon the “consummation of their business combination” from a “diverse group of institutional investors.”
Digital World Acquisition Corp. is a SPAC, or a “blank check company.” Blank check companies are publicly traded, developmental-stage companies that have not released an established business plan. Instead, they aim to gather funds as a startup in hopes of merging with a separate business entity.
Trump Media & Technology Group has not released a product to date, although it announced in October that it plans to launch Truth Social, an alternative social media platform that will “stand up to the tyranny of Big Tech.”
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FINRA and SEC are two federal agencies that regulate trading on the market. FINRA regulates capital markets, while the SEC regulates securities markets. Both organizations work to protect investors from crime or fraud.
Representatives from FINRA did not respond to requests for comment.
