Donald Trump’s Social Media Startup Investigated By SEC

The Securities Exchange Commission is looking into Donald Trump‘s Digital World Acquisition Corp. The company exists as a publicly traded vehicle that eventually will merge with Trump‘s new social media startup.

Deadline reports that a filing today requested documents from DWAP relating to communications within the company and Trump Media & Technology Group.

The investigation doesn’t jump to any conclusions. Nobody has been accused of any crimes just yet. The filing said the agency just wants to take a closer look.

“[The investigation] does not mean that the SEC has concluded that anyone violated the law or that the SEC has a negative opinion of DWAC or any person, event, or security.”

Advertising

Advertising

The Digital World company went public last September. Its shares spiked after plans were announced for the company to merge with Trump’s social media arm. The Donald Trump social media venture was to be funded by the company. So far, the investigation appears to be fact-finding in nature.

“According to FINRA’s request, the inquiry should not be construed as an indication that FINRA has determined that any violations of Nasdaq rules or federal securities laws have occurred, nor as a reflection upon the merits of the securities involved or upon any person who effected transactions in such securities.”

While no accusations have been made against Trump or either of the companies, it’s a red flag that the SEC is showing interest. It is one of a number of investigations, lawsuits, and other legal entanglements that the former President is currently dealing with. Time will tell if anything actually comes of it.

What do you think of this story? Let us know in the comments!