Digital World Acquisition Corp (DWAC), the special purpose acquisition company (SPAC) seeking to make former President Donald Trump’s social media platform public, experienced a significant increase in its stock price on Friday. The surge of more than 50% came after DWAC announced that it had reached a settlement with the Securities and Exchange Commission (SEC) regarding fraud charges. The settlement requires DWAC to pay an $18 million civil penalty fee if its merger with Truth Social parent company Trump Media & Technology Group (TMTG) is successful and the company goes public. However, if the merger fails to occur before January 1, 2025, and DWAC returns investors’ money, the SEC has agreed to waive the penalty.
The SEC accused DWAC of engaging in improper discussions regarding the merger, which is illegal for SPACs to do prior to filing for an initial public offering. This settlement follows the recent charges filed by the U.S. government against three individuals in Florida for insider trading related to DWAC.
Trump’s Legal Troubles Continue to Mount
The surge in DWAC’s stock is not the only recent development involving former President Donald Trump. Since leaving the White House in 2021, Trump has encountered a growing number of legal problems. He currently faces state charges in New York for alleged falsification of business records by his company. Additionally, he was indicted in federal court last month on charges of mishandling classified documents. Trump has pleaded not guilty in both cases.
Furthermore, authorities in Georgia are investigating Trump’s actions in his attempt to overturn his loss in the 2020 presidential election. As the frontrunner for the 2024 Republican nomination, these investigations could have significant implications for his political future.
It is worth noting that DWAC’s stock has previously experienced surges in response to news about Trump. For example, share prices rose after Trump’s announcement of his 2024 presidential bid and indictment. However, the settlement with the SEC adds to the list of legal troubles that have entangled Trump and his businesses since his departure from the White House.
At the time of writing, DWAC and Trump’s team had not provided any comments regarding the recent developments.
Digital World Acquisition Corp’s stock witnessed a significant increase after the company settled fraud charges with the SEC. The settlement requires DWAC to pay an $18 million civil penalty fee if its merger with Trump Media & Technology Group is successful. This surge follows previous surges in the company’s stock related to news about former President Donald Trump. However, Trump himself faces a growing list of legal problems, including state charges in New York, federal charges for mishandling classified documents, and an investigation in Georgia regarding his attempt to overturn the 2020 presidential election results. The implications of these legal issues for Trump’s political future are yet to be determined.
Leave a Reply