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| Donald Trump's social media platform under investigation |
Former US President Donald Trump's social media platforms are facing problems as US regulators investigate SPAC, a special purpose vehicle that plans to publish startups on the former president's social media.
DWAC said it has received inquiries for information from the Securities and Exchange Commission and the Financial Industry Regulatory Authority.
The Securities and Exchange Commission (SEC) is interested in documents relating to communications between the PSPC and Trump's social media projects, including DWAC board meetings, transaction policies and procedures, bank addresses, phone numbers, emails, the identities of certain investors, and some files related to the program. Communication between DWAC and Trump Media and Technology Group (TMTG).
At the same time, the Financial Industry Regulatory Authority is requesting detailed information about the review of the transaction that took place before the announcement of the merger between DWAC and TMTG on October 20. According to regulatory documents from the DWAC, the investigation took place in late October and early November.
If an agency finds evidence of improper financial transactions at the start of SPAC, it could derail the project and jeopardize the fate of Trump's media company.
PSPC shareholders can withdraw their investment at any time before it is made public. While 2020 is an important year for PSPC deals, investor enthusiasm for these deals has waned in recent months.
If approved, the PSPC deal would provide Donald Trump with nearly $300 million to acquire Truth Social (essentially a version of Twitter) to start operations. The company is also listed on the Nasdaq Stock Exchange.
The media and technology companies owned by Donald Trump are at risk
Trump Media and Technology Group announced in a press release that it has reached an agreement with several institutional investors to raise nearly $1 billion in a simultaneous private funding round.
DWAC expects Truth Social to have 40 million subscribers and 81 million users by 2026.
DWAC said it is cooperating with requests for information. He noted in a document that the investigation did not mean that the commission had concluded that someone had broken the law. or that the committee has a negative opinion about the DWAC, a person, or an event.
A similar statement has been issued to the requirements of the Financial Industry Regulatory Authority. "The investigation should not be construed as an indication of a violation of Nasdaq rules or federal securities laws," she said.
Donald Trump first registered with Trump Media & Technology Group in February. He said he plans to build a media force to counter the big tech companies that use his power to suppress dissent in the United States.
The former president was banned from using Twitter, Facebook and other social media platforms in January. This was after his followers started a rebellion in the United States Capitol.