Donald Trump's Social Media Company Receives Inquiry From Financial Industry Regulatory Authority

By Jace Dela Cruz

May 21, 2024 02:24 AM EDT

Trump Media & Technology Group, the owner of former President Donald Trump's social media company Truth Social, disclosed on Monday that it had coordinated with the Financial Industry Regulatory Authority (FINRA) for an inquiry related to its blank-check merger.

TOPSHOT - US President Donald Trump listens during a discussion with state attorneys general on protection from social media abuses in the Cabinet Room of the White House in Washington, DC, on September 23, 2020.
(Photo : MANDEL NGAN/AFP via Getty Images)

Inquiry of Financial Industry Regulatory Authority to Trump Media 

According to Reuters, the inquiry from the Financial Industry Regulatory Authority, Wall Street's self-regulator, primarily focused on trading activities before the deal with Digital World Acquisition Corp was announced. 

However, Trump Media emphasized that this should not be seen as a sign of wrongdoing. Trump Media has experienced a tumultuous journey ever since it went public.

The company's shares initially surged by as much as 59% during their Nasdaq debut on March 26. However, the stock has since lost those gains, leaving the company with a market value of nearly $7 billion.

READ NEXT: Donald Trump Attacks Joe Biden's Handling of Inflation After President Cited Snickers Bars as Example of 'Shrinkflation' 

Majority Stake of Donald Trump in Trump Media

Donald Trump holds a majority stake in Trump Media. He became a frequent user of Truth Social after he was banned from various social media platforms for alleged incitement of violence during the January 6 Capitol attack.

However, he was eventually reinstated on platforms like Twitter, now known as X. In the three months ending March 31, Trump Media reported a net loss of $327.6 million, compared to $210,300 in the previous year. 

Trump Media CEO Devin Nunes said that most merger-related expenses have been addressed. As of April 29, the company reported that most of its 621,000 shareholders are retail investors. 

READ MORE: Donald Trump Net Worth Reaches an All-Time High After Truth Social Stock Jumps Over 10%

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