Trump-Tied SPAC Misled Investors About Conflicts, SEC Alleges

Digital World Acquisition Corp., the blank-check firm seeking to take Donald Trump’s social media company public, misled investors, according to the US Securities and Exchange Commission.

The SEC on Thursday alleged that documents filed by Digital World in 2021 were “materially false.” The firm will pay $18 million to settle the allegations if it completes the deal with Trump Media & Technology Group, which runs the Truth Social platform.

According to the SEC, Digital World said in filings that it hadn’t had any discussions with target companies before offering shares. However, the regulator alleged the firm had, ...