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Trump SPAC under investigation by federal regulators, including SEC


U.S. President Donald Trump takes part in the inaugural presidential debate against Democratic presidential candidate Joe Biden, at the Health Education Campus (Case Western Reserve University) on September 29, 2020 in Cleveland.

Win McNamee – Getty Images| Getty Images

SPAC, a publicly traded company that plans to merge into Trump’s old social media firm, stated in a filing that the SEC regulatory agencies and FINRA requested details about trading stocks and communications before Trump’s deal was officially announced.

An 8-K filed by the FBI revealed that these investigations had been completed. Digital World Acquisition CorpThe special-purpose acquisition company.

According to the filing, “DWAC received some preliminary facts-finding inquires from regulatory authorities. It is cooperating.”

According to the filing, “Specifically, in the late October and early November 2021, DWAC received a FINRA request for information, relating to events (specifically a review trading) that occurred prior the public announcement on the October 20, 2021 Merger Agreement.”

According to FINRA, this inquiry shouldn’t be interpreted as a sign that FINRA has found violations of federal securities laws or Nasdaq rules have taken place, or as a reflection on the merits or any individual who made transactions in these securities.

“Additionally in November 2021, DWAC was notified by the SEC that it had received a voluntary information request. This requested documents relating, among other things, to meetings of DWAC’s Board of Directors and policies and procedures relating trading, identification of banks, telephone numbers, email addresses and the identities of some investors as well as certain documents and communications between DWAC, TMTG.” DWAC filed.

The SEC requested that an investigation be conducted. This does not mean the SEC is concluding that any individual has violated the law, nor that it has a negative opinion about DWAC, any person, event or security.

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