(PatrioticPost.com)- A filing that was made with the Securities and Exchange Commission (SEC) on Monday morning revealed that the federal securities regulators had broadened their investigation into the proposed merger between a blank check acquisition company and the social media company owned by the former president of the United States, known as Truth Social.
The future of Truth Social’s finances is significantly dependent on the investment connected to the merger, which may or may not take place at all.
The SEC is investigating interactions that have taken place between Trump and the blank check corporation known as Digital World Acquisition Corp. If the two sides had negotiated before DWAC went public, which would have been against the law, that information would be of particular relevance.
DWAC had previously reported that it was the subject of an inquiry, but on Monday, the company stated that authorities were asking for further papers and information.
This includes communications concerning DWAC’s due diligence of companies other than Trump’s companies, if it occurred, relationships between DWAC and other entities (including its IPO underwriter E.F. Hutton), certain forward-looking statements, and “certain elements of the transaction history for equity.”
The company stated in the filing that any resolution of the inquiry could result in severe penalties, injunctions, limitations on the operation of the business of Digital World, damage to its reputation, and other punishments against Digital World.
Trump has practically unrestricted control of the business thanks to his agreement with DWAC. No personal or political conduct, even if it was “dishonest, illegal, immoral, or unethical,” could be viewed as a breach of the agreement, according to a previous filing. Additionally, Trump will have the authority to choose who will serve on the board of directors and could potentially obstruct actions that would typically require stockholder approval, such as the purchase of the business.
Truth Social was first introduced as a rebranded version of Twitter in the spring of this year, and President Trump started using it as a means of communication around a month ago. Currently, he has 3.25 million people following him on the platform.