JAKARTA – The efforts of former US President Donald Trump to build his social media, Truth Social, did not go as smoothly as expected. Efforts to make it a public company, continue to experience obstacles.
Recently, the blank check company Digital World Acquisition Corp, which will be a shell for social media, was questioned by regulators in the US. DWAC announced Monday, June 27 that each board of directors has received subpoenas from federal prosecutors over the company's proposed merger with Trump's social media company.
The federal investigation is the latest setback in Trump's efforts to bring Trump Media & Technology Group Corp (TMTG), creator of the social media platform Truth Social, to the public. TMTG agreed in October to merge with Digital World and expects the deal to close in the second half of the year.
Digital World shares fell 6% in premarket trading after the company said in a regulatory filing that it was aware that a federal grand jury in the Southern District of New York had issued subpoenas to its directors.
The company has seven directors on its board, as of April 13, including Chief Executive Officer, Patrick Orlando, and Chief Financial Officer, Luis Orleans-Braganza.
On June 24, a grand jury subpoena was also sent to the company, this was also reported by Digital World.
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Earlier this month, the company reported that the US Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority, which have been investigating its deal with TMTG since late last year, were also seeking further information.
Recent subpoenas to Digital World seek documents similar to the SEC investigation as well as requests relating to the company's S-1 filings.
Digital World also said Bruce Garelick, chief strategy officer of Rocket One Capital, a Miami-based investment firm, is stepping down from the board. Some of the information requested by the grand jury is about communication with Rocket One.
Michael Shvartsman, founder and CEO of Rocket One Capital, did not immediately respond to a Reuters request for comment. "We will work closely with oversight that supports the SEC's critical mission to protect retail investors," said TMTG.
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