The main financial regulators of Wall Street They are investigating the $ 1.25 billion business of the former US president Donald Trump to list your new company from social networks, according to a presentation.
Digital World Acquisition Corp, the procurement company that agreed to merge with Trump Media & Technology Group Corp (TMTG), revealed in a regulatory filing on Monday that the Securities and Exchange Commission (SEC) and the Regulatory Authority of the Financial Industry (FINRA) were investigating the business.
TMTG did not respond to Reuters requests for comment.
Digital World said that the SEC requested in early November documents related to communications between Digital World and TMTG, the meetings of the Digital World board of directors, the policies and procedures related to the negotiation, the identification of the bank, telephone and email addresses and identities of some investors.
The SEC said in its request that its investigation does not mean that the regulator has concluded that someone has violated the law, Digital World added.
Senator Elizabeth Warren had asked the SEC to investigate TMTG’s proposed merger with Digital World for possible violations of securities laws, including whether enough information was released when talks began.
The SEC declined to comment Monday.
The investigations are known when there has been effervescence between Trump supporters and retail investors over the business. The frenzy of trading in Digital World shares has taken TMTG’s valuation from $ 875 million in October to close to $ 4 billion.
FINRA also declined to comment.
Trump was banned from major social media following his supporters’ attack on the U.S. Capitol on January 6, fearing he could instigate further violence.
In its first financial projections since the announcement of the merger, Digital World said it expected the average revenue per user of Trump’s social media app TRUTH Social to reach $ 13.50 in 2026, with 81 million total users.
The app hasn’t even made it to test mode. TMTG is planning to release a beta version of Truth Social in the first quarter of 2022.