Company to pay $18M in merger with Trump’s Truth Social.
Digit World Acquisition Company to Pay $18 Million Fine Imposed by SEC
Digit World Acquisition Company (DWAC), the “blank check” company that played a role in funding Trump Media and Technology Group (TMTG), has agreed to pay an $18 million fine imposed by the Securities and Exchange Commission (SEC). This comes after an investigation by the SEC that began in December 2021.
DWAC claimed to have raised $300 million for TMTG, the parent company of Truth Social, and had plans to merge with the company. However, the SEC found that DWAC failed to disclose its discussions with TMTG and a material conflict of interest involving its CEO and Chairman. These disclosure failures are particularly concerning in the context of a SPAC, as investors heavily consider factors such as the management team and potential merger targets when making financial decisions.
Following the release of the SEC investigation filing, DWAC stock dropped 14%, according to Seeking Alpha. However, the stock has since rebounded, increasing from a little over $13 on Thursday to roughly $20 on Friday, the day after the fine was announced.
Senate Committee to Consider Advancing Bipartisan Children’s Online Safety Bill
The Senate Committee is set to discuss advancing a bipartisan bill focused on children’s online safety. This bill aims to address the growing concerns surrounding the safety of children in the digital world.
Former President Donald Trump, despite being reinstated on Twitter, remains active on Truth Social, where he has amassed over 5 million followers.
In response to the rise of Truth Social, Meta, the parent company of Facebook and Instagram, has announced its own platform called Threads. Threads is designed to compete with both Twitter and Truth Social. In its first few days of launch, Threads has already gained 70 million new users.
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