The federal securities regulators are investigating a merger between an acquisition company and Donald Trump’s Truth Social, according to a filing made with the Securities Exchange Commission (SEC) on Monday.
The financial prospects of Truth Social are reliant on the merger with Digital World Acquisition Corp (DWAC). The investigation is supposed to determine whether negotiations between the two sides began before DWAC went public.
The investigation into Truth Social was started after a request from Senator Elizabeth Warren who last year wrote a letter to the SEC Chair Gary Gensler saying that she was, “concerned for some time about the misaligned incentives underlying SPAC deals, which are often structured to exploit retail investors to the benefit of large institutional investors such as hedge funds, venture capital insiders, and investment banks”....
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