Truth Social busted for $8M back door deal with a porn payment company.
An obscure financial entity with connections to a Caribbean-island bank that bills itself as a top payment service for adult entertainment sites would gain a sizable stake in former president Donald Trump’s media company if its merger deal proceeds, according to internal documents a company whistleblower has shared with federal investigators and The Washington Post.
Trust linked to porn-friendly bank could gain a stake in Trump’s Truth Social
ES Family Trust offered $8 million in loans to Trump Media in an unusual deal criticized for conflicts of interest.
Shares of Digital World Acquisition, the SPAC that plans to merge with Donald Trump’s Truth Social media company, surged as much as 11% on Friday after the former president was indicted by a Manhattan grand jury.
The surge in the stock could be driven by the idea that while the indictment is bad news for Trump, it could be good news for business, helping drive activity and engagement on a service that looks a lot like Twitter.
Since the indictment was revealed Thursday afternoon, Trump posted more than 45 times to his Truth Social account, both reposting statements in support of him from other Republicans as well as posting his own thoughts on the matter.
“These Thugs and Radical Left Monsters have just INDICATED [sic] the 45th President of the United States of America, and the leading Republican Candidate, by far, for the 2024 Nomination for President,” Trump posted to Truth Social.
Nasdaq-listed Digital World Acquisition Corp — a special purpose acquisition company, or SPAC, planning to merge with Truth Social holding company Trump Media and Technology Group — closed 8% lower at $14.03 on Tuesday after it announced a delay in filing financial statements.
The stock’s performance on Tuesday is a sharp reversal from Friday when Digital World’s share prices soared 11%, post Trump’s formal indictment. Friday’s rally could have been driven by speculation that the indictment would prove positive for Trump Media and Technology Group’s business, Insider’s Matthew Fox reported Friday.
It further said its accounting staff needs more time to prepare the financial statements for the period ended December 31, 2022. Digital World expects to report a loss of at least $10 million for the year, per the filing.
The Securities and Exchange Commission, or SEC, hasn’t approved Digital World’s merger with Truth Social. The SEC has been probing the merger since November 2021 following reports that executives of both companies may have held deal talks before Digital World’s initial public offering, which would violate SPAC regulations if proven true.
Since his indictment, Trump has been active on Truth Social.
