Trump’s app deal faces fresh legal scrutiny

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Digital World Acquisition Corp. said the investigation could impede or even prevent its acquisition of the Trump’s social app….reports Asian Lite news

The company planning to buy Donald Trump’s new social media business – Truth Social app – has revealed that it received subpoenas from a federal grand jury in New York, media reported.

Digital World Acquisition Corp. said the investigation could impede or even prevent its acquisition of the Trump’s social app.

Soon after the disclosure, the shares of the company had dropped almost 10% on Monday, the Associated Press reported.

Earlier this month, the company reported that the U.S Securities and Exchange Commision (SEC) and the Financial Industry Regulatory Authority, which have been probing its deal with TMTG since late last year, had also sought more information.

The former president’s social media venture launched in February as he seeks a new digital stage to rally his supporters and fight Big Tech limits on speech, a year after he was banned from Twitter, Facebook and YouTube.

The Trump Media & Technology Group — which operates the Truth Social app and was in the process of being acquired by Digital World — said in a statement that it will cooperate with “oversight that supports the SEC’s important mission of protecting retail investors.”

The new probe could make it more difficult for Trump to finance his social media company. The company last year got promises from dozens of investors to pump $1 billion into the company, but it can’t get the cash until the Digital World acquisition is completed, it was reported.

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