Federal securities regulators have expanded their investigation into the planned merger between a blank check acquisition company and former President Trump’s social media business, known as Truth Social, according to a Monday morning filing with the SEC, Axios reports.
Truth Social’s financial prospects are heavily reliant on investment tied to the merger, which may never come to pass.
The SEC is investigating communications between Digital World Acquisition and Trump. Of particular interest would be if the two sides negotiated prior to DWAC going public, which would have been illegal.
DWAC previously disclosed that it was under investigation, but on Monday disclosedd it had been hit with another subpoena, saying regulators are seeking “additional documents and information.”
Shares of the SPAC, which have lost nearly 15% so far this year, were down about 10% today in premarket trading and had fallen more than 13% at the close. Read more.
