A federal grand jury in the Southern District of New York has subpoenaed board members of the company looking to merge with former President Donald Trump’s social-media company Truth Social. Blank-check firm Digital World Acquisition Corp (DWAC) revealed on Monday that all seven of its board members have been asked for documents related to a Securities and Exchange Commission inquiry filed against the firm last year.
The planned SPAC merger, now being threatened by multiple federal investigations, would allow the company to access billions of dollars in public markets. The federal grand jury is also seeking information related to Rocket One Capital, a Miami based venture capital firm. The document released by the SEC revealed that Rocket One’s Chief Strategy Officer Bruce Garelick had resigned from the board of DWAC.
In November of last year Sen. Elizabeth Warren called on the SEC to investigate possible securities violations by Truth Social and DWAC. Warren’s letter to the SEC cited New York Times reporting indicating that DWAC’s chief Patrick Orlando “had been discussing a deal with Mr. Trump” months before shares of the SPAC began trading, potentially misleading shareholders and the public.
The Trump Media Technology Group released a statement indicating it “will cooperate with-oversight that supports the SEC’s important mission of protecting retail investors.”