DWAC Stock (NASDAQ:DWAC)
Once news broke that federal prosecutors were looking into whether Trump’s social media firm and Truth Social app violated money laundering guidelines, DWAC stock fell 4.5%.
According to a report published on Wednesday by The Guardian, which cited sources who are familiar with the investigation, federal prosecutors in New York began investigating whether Trump Media & Technology may have violated money laundering regulations last year in connection with the acceptance of $8 million from an entity with alleged Russian ties. The report cited the sources.
According to the article, investigations into two loans to Trump Media amounting to $8 million were initiated by prosecutors before the end of the previous year. Because of the broadened scope of the criminal investigation, there is a risk that the business transaction with SPAC Digital World Acquisition (NASDAQ:DWAC) would be delayed even longer.
The outside legal counsel for Trump Media refused to comment on the probe when contacted by the Guardian.
The Securities and Exchange Commission (SEC) filed subpoenas to get information on the previous year’s merger of Trump Media & Technology Group and DWAC. DWAC stock has dropped by 88% since achieving highs in early March last year. Investors are anxious about the SEC delays and Trump’s expected to return to rival social media platforms such as Twitter and Facebook after he was banned after the assault on the United States Capitol in January of 2021. DWAC stock achieved highs in early March of last year.
The most recent revelation surfaced shortly after Trump Media & Technology requested Congress around the end of the previous month, requesting that the latter investigate the SEC’s investigation of the company’s proposed merger with DWAC. The evaluation of the deal by the SEC has been accused by Trump Media of “egregious behavior” and “blatant partisanship,” and the company has asked Congress for assistance in investigating these allegations.