US Regulators Probe Trump Social Media Deal

Wall Street’s top financial regulators are investigating former US President Donald Trump’s $1.25 billion deal to float his new social media venture on the stock market, reported Reuters. 

Digital World Acquisition Corp, the blank-check acquisition firm that agreed to merge with Trump Media & Technology Group Corp (TMTG), disclosed in a regulatory filing on Monday that the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) were probing the deal.

Related: Warren Asks SEC To Probe Trump SPAC

Digital World said the SEC asked for documents in early November relating to communications between Digital World and TMTG, meetings of Digital World’s board, policies and procedures relating to trading, the identification of banking, telephone, and email addresses and the identities of certain investors.

The SEC stated in its request that its investigation does not mean that the regulator has concluded that anyone violated the law, Digital World added.

Senator Elizabeth Warren had asked the SEC to investigate TMTG’s proposed merger with Digital World over potential violations of securities laws, including whether they had sufficiently disclosed when deal talks began.

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