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 has approached Mr. Trump. Trump finished the deal.
Federal prosecutors have filed grand jury subpoenas against Trump Media & Technology Group and “certain current and former TMTG personnel,” according to a regulatory filing Friday by special-purpose acquisition company Digital World Acquisition, which has a tentative merger agreement with Trump Media.
Grand jury subpoenas are typically issued in connection with a potential criminal investigation. this said filing The Securities and Exchange Commission also submitted a subpoena to Trump Media this week.
A few days ago, Digital World revealed that he, too, had received grand jury subpoenas from federal prosecutors in Manhattan and similar subpoenas presented to the board of directors.
The grand jury subpoenas appear to be related to earlier SEC subpoenas in Digital World seeking communication with Trump Media representatives regarding possible merger talks ahead of Digital World’s IPO in September.
Friday’s regulatory filing said the grand jury subpoenas submitted to Trump Media “search for Digital World and its executives a subset of the same or similar documents requested in the subpoenas.”
The expanding investigation threatens to delay the completion of the merger, which Mr. Trump’s company and social media platform, Truth Social, with up to $1.3 billion in capital in addition to a stock market listing.
this SEC investigation It focused on whether there were serious discussions between Digital World and the Trump Media leadership before the special-purpose buyout, or SPAC, went public in September, and if so, why? These talks were not disclosed. in editor files. SPACs raising funds to go public in hopes of finding a merger candidate do not need to have an acquisition target in mind when raising funds from investors.
Regulators also requested information about the trading activities in Digital World’s securities prior to the merger announcement in October. A few weeks before the merger announcement, There was a huge fluctuation in trade Digital World warrants — a type of security that gives the holder the right to purchase shares at a specified price.
Trump Media is based in Sarasota, Fla. and is led by former Republican congressman Devin Nunes, who became CEO this year. Mr. Trump, who has a licensing deal with the company, is president.
“We will continue to fully cooperate with investigations into our planned merger and will comply with recent subpoenas we have received, none of which were directed against the president or CEO of the company,” Trump Media said in a statement.
It is unclear which current and former staff at Trump Media received the subpoena.
Truth Social, a Twitter-like platform, remains the company’s core product. Mr. Trump has become a popular poster on the platform over the past few months.
This week, he used the platform multiple times to criticize the testimony of a former White House aide. Cassidy Hutchinson, January before the congress. 6 committees.
Trump Media has described Truth Social as a “free speech” alternative to Twitter, which has permanently banned the former president from using its platform after January 1. 6, 2021, attack on the Capitol.
Maggie Haberman contributing reporting.
