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World NewsTrump SPAC under investigation by federal regulators, including SEC

Trump SPAC under investigation by federal regulators, including SEC

Former U.S. President Donald Trump leaves Trump Tower within the Manhattan borough of New York City, New York, October 18, 2021.

Jeenah Moon | Reuters

The publicly traded SPAC that has introduced plans to merge with former President Donald Trump’s new social media firm mentioned in a brand new submitting Monday that the Securities and Exchange Commission and one other market regulator have requested for info relating to inventory buying and selling and communications with Trump’s firm earlier than the deal was introduced.

The investigations by the SEC and the Financial Industry Regulatory Authority had been disclosed in an 8-Okay submitting with the SEC by Digital World Acquisition Corp., the particular objective acquisition firm.

The submitting comes simply two dates after Trump’s firm, Trump Media & Technology Group and DWAC said the SPAC had reached agreements to obtain $1 billion in committed capital from a “diverse group of institutional investors” to be acquired when the merger is consummated.

It additionally comes three weeks after Sen. Elizabeth Warren, D-Mass., requested the SEC to analyze potential securities violations involving the merger.

Warren in her request famous information studies that DWAC “may have committed securities violations by holding private and undisclosed discussions about the merger as early as May 2021, while omitting this information [SEC) filing and other public statements.”

But the investigations by the SEC and FINRA predate Warren’s request, in accordance with DWAC’s 8-Okay submitting.

“DWAC has received certain preliminary, fact-finding inquiries from regulatory authorities, with which it is cooperating,” the corporate mentioned within the submitting.

“Specifically, in late October and in early November 2021, DWAC received a request for information from FINRA, surrounding events (specifically, a review of trading) that preceded the public announcement of the October 20, 2021 Merger Agreement,” the submitting mentioned.

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“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.”

The social media app will probably be developed by Trump Media and Technology Group (TMTG).

Rafael Henrique | LightRocket | Getty Images

“Additionally, in early November 2021, DWAC received a voluntary information and document request from the SEC which sought, inter alia, documents relating to meetings of DWAC’s Board of Directors, policies and procedures relating to trading, the identification of banking, telephone, and email addresses, the identities of certain investors, and certain documents and communications between DWAC and TMTG,” DWAC’s submitting mentioned.

“According to the SEC’s request, 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.”

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