The company buying Trump’s Truth Social has warned the deal could fall apart as he’s been subpoenaed by a federal grand jury | Latest News Headlines

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Donald Trump (left) and a phone displaying his social media app, Truth Social.Brandon Bell/Getty Images/Christoph Dernbach/picture alliance via Getty Images

  • The SPAC trying to buy the company behind Truth Social received grand jury subpoenas, according to an SEC filing.

  • The subpoenas indicate that federal prosecutors may be considering a criminal investigation.

  • The Digital Wold and TMTG merger is already under investigation by the SEC.

SPAC, which is trying to acquire the company behind Donald Trump’s social media app, Truth Social, said in a filing with the Securities and Exchange Commission on Monday that the acquisition was under review. a new investigation by a grand jury.

Digital World Acquisition Corp warned in its filing that it had received a number of subpoenas, which could delay or even kill the merger it is pursuing with Trump Media and Technology Group, especially as the deal is already under investigation by the SEC.

The filing says a member of Digital World’s board of directors received subpoenas from a grand jury based in the Southern District of New York on June 16.

The grand jury also served subpoenas on the company on June 24, according to the SEC filing.

Digital World’s filing on Monday said the subpoenas issued by the grand jury contained “substantially similar requests” to those previously made by the SEC.

The subpoenas signal that federal prosecutors may explore the possibility of a criminal investigation into the acquisition.

United States Attorney for the Southern District of New York Damian Williams declined to comment when contacted by The New York Times about the filing.

Williams’ office did not immediately respond when contacted by Insider outside of normal US business hours.

Digital World Acquisition Corp and TMTG did not immediately respond when contacted by Insider outside of normal US business hours.

Investigator scrutiny isn’t the only threat to Digital World. The company warned in a filing in May that Trump’s previous failed business ventures — including the Trump Taj Mahal casino, Trump University and Trump vodka — mean TMTG could be vulnerable to bankruptcy.

Truth Social is a lot like Twitter and launched on the Apple App Store in February. While Trump was initially fairly quiet on the app, he’s started using it more frequently in recent months.

Trump’s Twitter account was permanently suspended in January 2021 after he posted a video addressing rioters during the January 6 Capitol storming.

In the video, Trump told rioters, “Go home. We love you. You are very special,” and reiterated baseless claims that the election was fraudulent.

Twitter said it banned him “due to the risk of further incitement to violence.”

Read the original article on Business Insider

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