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Why SEC and FINRA Are Investigating Digital World Acquisition Corporation

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Former U.S. President Donald Trump’s SPAC is being investigated by the SEC and FINRA.

Related: Donald Trump Media SPAC Digital World Acquisition In SEC Probe Linked To October Merger

Digital World Acquisition Corporation said, in an 8-K filing on Monday, that it is cooperating with the request.

"DWAC has received certain preliminary, fact-finding inquiries from regulatory authorities, with which it is cooperating," the company said, in a filing. "Specifically, in late October and in early November 2021, DWAC received a request for information from FINRA, surrounding events (specifically, a review of trading) that preceded the public announcement of the October 20, 2021 Merger Agreement."

On December 4, Trump’s social media firm said that it had entered into agreements to raise about $1 billion from its investors.

Related: Trump Venture Seeks $1B Hedge-Fund Backing for Social-Media Plan

Trump’s social media app, Truth Social, is planning to debut early next year. The beta version of Truth Social had originally been slated for a November release. However, it appears that the deadline has been missed.

The landing page of the 'Truth Social' currently has 'Waiting List' to sign up.

Trump vowed to launch the platform after he was banned from Twitter and Facebook following the January 6 riots.

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