Sales of Digital World Acquisition stock triggered a widespread federal probe that involved a confidential informant, a secret airport phone scan and an elite anti-money-laundering squad. Three people were indicted, but the investigation continues.
The numbers are the first time that any internal financial details on the social platform have been shared publicly, and they suggest that while Trump has made Truth Social his primary social media platform, it has not been translating into meaningful revenue for the tech startup, which is owned by Trump Media & Technology Group.
Shares of Digital World Acquisition Corp. dropped almost 10% Monday as the company revealed that it has received subpoenas from a grand jury in New York. The Justice Department subpoenas follow an ongoing probe by the Securities and Exchange Commission into whether Digital World broke rules by having substantial talks about buying the Trump Media & Technology Group starting early last year before Digital World sold stock to the public for the first time in September, just weeks before its announcement that it would be buying Trump’s company.
Special purpose acquisition company Digital World Acquisition Corp. disclosed on Monday financial regulators probing its deal with former U.S. President Donald Trump’s social media firm have sought more information, while warning this could potentially delay the deal.
Digital World Acquisition Corp., the company that intends to acquire Trump Media & Technology Group, says the media group plans to offer a subscription video streaming service that will “embrace” pro-gun programming, among other themes. The filing with the Securities and Exchange Commission — on May 27 — comes just days after 19 children and two teachers were killed by a shooter in an elementary school in Uvalde, Texas.
The SEC is probing Digital World Acquisition Corp. — the publicly traded special purpose vehicle that plans to merge with former president Donald Trump’s social media startup.
