SEC launches investigation into Trump’s new social media venture

The publicly traded company that plans to merge with Donald Trump‘s new social media venture revealed on Monday that it is being investigated by federal regulators.

The disclosure came in a filing by Digital World Acquisitions Corp – a special purpose acquisition company (SPAC) or ‘blank check’ company – that said the Securities and Exchange Commission and the Financial Industry Regulatory Authority and FINRA regulatory agencies had asked for details of stock trading and communications with Trump’s company before the deal was announced.

In a filing on Monday, DWAC said it had been asked by FINRA for information about its activities ahead of announcing a merger with Trump’s company. 

“According to FINRA’s request, the inquiry should not be construed as an indication that FINRA has determined that any violations of Nasdaq rules or federal securities laws have occurred, nor as a reflection upon the merits of the securities involved or upon any person who effected transactions in such securities,” it said.  

The filing also said the SEC had asked for “certain documents and communications” between it and the Trump Media Technology Group. “According to the SEC’s request, the investigation does not mean that the SEC has concluded that anyone violated the law or that the SEC has a negative opinion of DWAC or any person, event, or security,” it said.

Trump is working to launch TRUTH Social during the first quarter of 2022. Announcing the injection of cash into his upcoming site TRUTH Social, Trump said: “$1bn sends an important message to Big Tech that censorship and political discrimination must end. As our balance sheet expands, Trump Media & Technology Group will be in a stronger position to fight back against the tyranny of Big Tech.”

In an interview with Newsmax, Trump took aim at the SEC and hinted that the agency was biased. “This is just a continuation of witch hunts. Anything you do, they want to look at it. They look at it. They don’t look at themselves,” he said. He went on to suggest that without his social-media company, the country would have “pure communism.”

“If our side doesn’t have a voice, eventually … you’re going to end up with pure communism,” he said. “It’s a disgrace what’s going on. But you’re going to end up with a communist nation.”