Federal grand jury subpoenas firm that merged with Trump social network

The firm that merged with former President Trump’s social media company received federal grand jury subpoenas last week, the company disclosed in a Securities and Exchange Commission (SEC) filing Monday.

A grand jury in the Southern District of New York issued subpoenas to each member of the board of directors of the special purpose acquisition company, or SPAC, that merged with the Trump Media and Technology Group. 

The latest subpoenas add to growing scrutiny of the deal. Federal regulators launched investigations into the merger between Trump’s company and Digital World Acquisition Corp, the SPAC, in December, just weeks after the merger was announced.

The new subpoenas seek some of the same documents as federal regulators, as well as requests for communications with or about “multiple individuals,” and information about Rocket One Capital, a Miami-based venture capital firm, according to Monday’s filing. 

Trump Media and Technology Group said in a statement it will cooperate with the investigation. 

“TMTG is focused on reclaiming the American people’s right to free expression,” it said. “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 development risks further delaying the merger’s completion. 

The investigation from the SEC and the Financial Industry Regulatory Authority is seeking information about events that took place before the public announcement.

SPACs, also known as blank check companies, are formed to raise capital through an initial public offering for the purpose of acquiring or merging with a company. But they are not supposed to have an acquisition target in mind as they raise money from investors. 

Trump launched his tech company, and its associated social media app Truth Social, after leaving office. The launch also followed his suspensions from Twitter and Facebook after the companies found he violated their policies over his tweets about the riot at the Capital on Jan. 6, 2021. 

The platform seeks to attract right-wing users and brands itself as a pro-free speech space with limited content moderation, but it has failed to gain significant momentum and traction since launching.