Jun 27, 2022 - Economy & Business

Subpoenas issued to directors of SPAC taking Trump's social network public

Photo illustration of the top half of Donald Trump's face
Photo illustration: Sarah Grillo/Axios. Photo: Chip Somodevilla/Getty Images

A federal grand jury in New York has issued subpoenas to each board director of the blank check company that has agreed to take public Donald Trump's social media startup, Truth Social.

Why it matters: This is in addition to previously disclosed investigations into the blank-check company by both the SEC and Justice Department, thus intensifying questions about Truth Social's financial future.

Details: Digital World Acquisition Corp. on Monday disclosed the subpoenas, adding that some of the information requested was about communications with a Miami-based investment firm called Rocket One Capital.

  • It also said Bruce Garelick, chief strategy officer at Rocket One, is resigning from Digital World Acquisition's board of directors.

By the numbers: Trump currently has 3.37 million followers on Truth Social, a far cry from the 88.7 million followers he had on Twitter before being banned in early 2021. It's worth noting, however, that Truth Social remains unavailable for Android users.

What they're saying: Trump Media Technology Group, the parent company of Truth Social, this morning issued the following statement:

"TMTG is focused on reclaiming the American people's right to free expression. Every day, our team works tirelessly to sustain Truth Social's rapid growth, onboard new users, and add new features. We encourage — and will cooperate with — oversight that supports the SEC's important mission of protecting retail investors."

The bottom line: There have been some attempts to frame these investigations in political terms, but they appear to be more about apolitical securities law. Namely, that blank check companies can't court potential targets prior to their own IPOs — which is something Digital World Acquisition is speculated to have done.

Go deeper