SPAC Digital World Acquisition, (NASDAQ:DWAC), which is taking Trump’s social media company public, received two more subpoenas related to a Securities and Exchange Commission probe this week.
Digital World was informed that on Monday that Trump Media & Technology, or TMTG, received a subpoena from the SEC seeking documents relating to Digital World and other potential counterparties for a business transaction involving TMTG, according to an 8-K filing on Friday. In addition, DWAC was also informed that on Thursday TMTG was served with a subpoena, issued by a federal grand jury in the Southern District of New York, seeking a subset of the same or similar documents demanded in subpoenas to DWAC and its directors.
Certain current and former TMTG personnel have also recently received individual grand jury subpoenas, according to the filing. The subpoenas, and the underlying investigations by the SEC and the U.S. Department of Justice, could materially delay, materially impede, or prevent the consummation of the SPAC transaction
The latest subpoenas come after DWAC fell 9.6% on Monday after disclosing new subpoenas in a previously disclosed SEC probe of the company.
The newest subpoena comes after DWAC in early December disclosed it received voluntary information and document request from the SEC, which sought documents relating to meetings of DWAC’s board of directors, policies and procedures relating to its interactions with TMTG. DWAC disclosed in its most recent 10-Q filing in May that it had received a subpoena in relation to the probe on the business combination.
The disclosure about the regulatory probes followed Sen. Elizabeth Warren (D-MA) sending a letter to SEC Chairman Gary Gensler requesting that the agency investigate the transaction.
The Warren request followed a New York Times report that Trump’s deal with DWAC may have skirted securities laws. The former president began discussing a potential deal with Patrick Orlando, the founder of the Digital World SPAC well before DWAC went public in September.