Sen. Elizabeth Warren calls on SEC to research Trump SPAC deal

Sen. Elizabeth Warren on Thursday requested the Securities and Trade Fee to research a deliberate SPAC deal involving former President Donald Trump’s deliberate social media platform.

Warren, a Massachusetts Democrat, in a letter to SEC Chairman Gary Gensler famous latest information stories that Digital World Acquisition Corp., which final month introduced plans to merge with Trump’s new firm, “could have dedicated securities violations by holding non-public and undisclosed discussions in regards to the merger as early as Might 2021, whereas omitting this data [SEC) submitting and different public statements.”

Warren additionally wrote, “The stories about DWAC and Trump Media and Know-how Group7 seem like a textbook instance of a SPAC deceptive shareholders and the general public about materially essential
data.”

The SEC didn’t instantly reply to CNBC’s request for remark.

Particular goal acquisition firms akin to DWAC are created to boost capital in public fairness markets with the purpose of buying or merging with non-public companies.

Trump Media & Know-how Group final month stated it had entered right into a merger settlement with DWAC that will finish with Trump’s firm turning into a publicly listed firm, topic to regulatory and stockholder approval.”

Trump on the similar time stated he would roll out a platform referred to as “TRUTH Social,” which he claimed will “stand as much as the tyranny of Huge Tech.”

The Republican ex-president was banned by social media giants Twitter and Fb earlier this 12 months after accusations he incited the Jan. 6 Capitol riot by his supporters.

– Further reporting by CNBC’s Thomas Franck

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