Shares of Digital World Acquisition Corp. Surge Following SEC Settlement
Overview
Shares of Digital World Acquisition Corp. (DWAC) experienced a significant increase of over 50% after the company announced its settlement of fraud charges with the Securities and Exchange Commission (SEC) for $18 million. This surge pushed DWAC’s stock to approximately $20, although it remains far below its peak of over $95 in March of the previous year.
About DWAC
DWAC is a special purpose acquisition company (SPAC) that revealed its intention to merge with Trump Media & Technology Group (TMTG), the parent company of Truth Social, in October 2021. However, this merger has encountered several delays.
SEC Settlement Details
The SEC’s settlement requires DWAC to pay an $18 million civil penalty if it proceeds with the merger and takes TMTG public. Nevertheless, if the merger fails to occur before January 1, 2025, and DWAC returns investors’ funds, the SEC has agreed to waive the penalty. The SEC accused DWAC of engaging in improper merger discussions, as it is illegal for SPACs to solicit specific merger targets before filing for an initial public offering.
Additional Legal Troubles
In addition to the SEC settlement, three Florida men associated with DWAC are currently facing insider trading charges from the U.S. government. Notably, DWAC’s stock has previously experienced surges linked to news about former President Donald Trump, including his announcement of a presidential bid in 2024 and his indictment. Moreover, the settlement adds to the mounting legal issues that Trump and his businesses have encountered since leaving the White House in 2021.
Trump’s Legal Challenges
Trump faces state charges in New York for alleged falsification of business records and was recently indicted in federal court for mishandling classified documents. He has pleaded not guilty in both cases. Furthermore, authorities in Georgia are investigating Trump’s attempts to overturn the results of the 2020 presidential election. At the time of writing, DWAC and Trump’s team have not responded to requests for comment.
Shares of Digital World Acquisition Corp. Surge Following SEC Settlement
Overview
Shares of Digital World Acquisition Corp. (DWAC) experienced a significant increase of over 50% after the company announced its settlement of fraud charges with the Securities and Exchange Commission (SEC) for $18 million. This surge pushed DWAC’s stock to approximately $20, although it remains far below its peak of over $95 in March of the previous year.
About DWAC
DWAC is a special purpose acquisition company (SPAC) that revealed its intention to merge with Trump Media & Technology Group (TMTG), the parent company of Truth Social, in October 2021. However, this merger has encountered several delays.
SEC Settlement Details
The SEC’s settlement requires DWAC to pay an $18 million civil penalty if it proceeds with the merger and takes TMTG public. Nevertheless, if the merger fails to occur before January 1, 2025, and DWAC returns investors’ funds, the SEC has agreed to waive the penalty. The SEC accused DWAC of engaging in improper merger discussions, as it is illegal for SPACs to solicit specific merger targets before filing for an initial public offering.
Additional Legal Troubles
In addition to the SEC settlement, three Florida men associated with DWAC are currently facing insider trading charges from the U.S. government. Notably, DWAC’s stock has previously experienced surges linked to news about former President Donald Trump, including his announcement of a presidential bid in 2024 and his indictment. Moreover, the settlement adds to the mounting legal issues that Trump and his businesses have encountered since leaving the White House in 2021.
Trump’s Legal Challenges
Trump faces state charges in New York for alleged falsification of business records and was recently indicted in federal court for mishandling classified documents. He has pleaded not guilty in both cases. Furthermore, authorities in Georgia are investigating Trump’s attempts to overturn the results of the 2020 presidential election. At the time of writing, DWAC and Trump’s team have not responded to requests for comment.