Trump SPAC under investigation by federal regulators, including SEC
Summary
The SPAC planning to merge with former President Donald Trumps new social media company revealed Monday that the Securities and Exchange Commission and another regulator asked it for information regarding stock trading and communications with Trumps firm before the deal was announced. DWACs stock price dramatically increased after that announcement, and trading volume in the companys shares exploded. DWACs filing said that both the SEC and FINRA had said in their requests that there has been no determination of a violation of securities laws or other wrongdoing by the company. It also comes three weeks after Sen. Elizabeth Warren, D-Mass., asked the SEC to investigate possible securities violations involving the merger. Warren in her request noted news reports that DWAC "may have committed securities violations by holding private and undisclosed discussions about the merger as early as May 2021, while omitting this information [SEC) filing and other public statements."