Federal Regulators are Investigating the Trump SPAC Deal

The shell company facilitating former President Donald Trump’s return to Wall Street disclosed Monday that federal Regulators are investigating the deal. Trump announced a new media venture that would stand up to the tyranny of Big Tech.

That new entity, chaired by the former president, agreed to go public through a merger with Digital World, a Special Purpose Acquisition Company, or SPAC.In a filing Monday, Digital World Acquisition Corp. said it received a document and information request from the Securities and Exchange Commission in early November.

Other items, Digital World, said the SEC request sought documents and communications between Digital World and Trump Media and Technology Group. Digital World also told Wall Street’s self-Regulators, the Financial Industry Regulators Authority, or FINRA, is looking into trading before the deal’s announcement.Shares of Digital World skyrocketed as much as 1,657% in the days after the deal was announced. The company achieved meme stock status almost overnight, even though little is known about the venture. Filings did not indicate how much revenue if any, the firm generates.

Trump began discussing a merger with Digital World long before the blank-check company went public and before such talks were disclosed to investors. Digital World said Monday the SEC request sought documents relating to meetings of its board of directors, policies and procedures related to trading, the identification of banking, telephone, and email addresses, and the identities of certain investors.