Donald Trump’s TRUTHSocial platform lands in crosshairs of US regulators

Former United States President Donald Trump‘s upcoming social media platform TRUTHSocial, which has been highly awaited by his followers and those looking to make a quick buck in the market, has landed in the crosshairs of regulators.

A company that joined hands with the Trump Media & Technology Group acknowledges that it had filed inquiries made by regulators early this week. The acknowledgment came with financial predictions about the company, which aims to lock horns with other platforms like Twitter and Facebook. 

Also Read: Opposite of fake news: Twitter reacts to Donald Trump’s TRUTH Social announcement

Digital World Acquisition announced that it is in contact with the United States Securities Exchange Commission and the Financial Industry Regulation Authority about “the preliminary, fact-finding inquiries”, according to reports from Associated Press.

The Financial Industry Regulation Authority, or FINRA, asked in late October and early November for a review of trading in Digital World Acquisition’s stock before the October 20 merger deal was announced.

That announcement sent the stock surging from $9.96 to $94.20 in just two days as Trump supporters and investors looking to make a fast buck piled in. The shares have since pulled back to roughly $43.

Also Read: Trump’s social media company says it has lined up $1 billion in capital

The Securities and Exchange Commission made a request in early November for documents related to meetings of Digital World Acquisition’s board, trading policies and other things.

According to the company, the financial regulator’s request said the commission’s “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.”

The company announced over the weekend that it has lined up $1 billion in promised investments for the former president’s new venture from a group of unnamed institutional investors, and it filed a copy of the presentation used to pitch investors and analysts.

(With AP inputs)