Trump’s Media Company is Under Investigation by the SEC

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Former President Donald Trump hasn’t truly gotten his new social media platform off the ground. However, it is already facing a serious investigation from the Securities and Exchange Commission.

The SEC and other regulators announced the launch of “fact-finding inquiries” into the media company Trump is trying to construct from the partnership of Digital World Acquisition Corp (DWAC) and Trump Media & Technology Group (TMTG).

The statement notes that “the investigation does not mean that the SEC has concluded that anyone violated the law,” but it does come after the organization has been seeking documents regarding DWAC policies, investor information, and communications with TMGT.

The investigation comes after previous reports outlined Trump’s effort to merge TMGT with DWAC, a special purpose acquisition company (SPAC). SPACs, also known as “blank cheque companies,” are designed to help private firms go public by setting up a shell company with the sole purpose of raising money through an IPO to acquire another company.

While SPACs face less banking oversight and regulations than other investment firms, some have been known to fall short on their financial expectations, and others have wound up bogged down in legal complications.

TMTG claims to have obtained $1 billion in investment funding as Trump works on “Truth Social,” which he’s trying to market as a rival platform to the social media companies that banned him after the storming of the U.S. Capitol. Questions have already been raised, though, about whether DWAC cut corners on securities laws while engaging with investors.