Trump Media was subpoenaed in federal courtroom over the Reality Social deal.

An investigation by federal prosecutors and securities regulators into a proposed merger between a cash-rich white check company and former President Donald J. Trump’s social media company has opened up closer to Trump concluding the deal.

Federal prosecutors served grand jury subpoenas against Trump Communications & Technology Corporation and “several current and former TMTG employees,” according to Friday’s regulatory filing by the Digital World Acquisition, a special purpose acquisition company, has a tentative agreement to merge with Trump Media.

Subpoenas are often issued in connection with a potential criminal investigation. The submit an application stating The Securities and Exchange Commission also served subpoenas on Trump Media this week.

Just a few days ago, Digital World revealed that it has also received subpoenas from federal prosecutors in Manhattan along with similar subpoenas issued to its board of directors.

The major subpoenas appear to be related to an earlier SEC subpoena on Digital World seeking information regarding potential merger negotiations with representatives of Trump Media prior to its initial release. Digital World’s public offering in September.

Regulatory filings on Friday said the grand jury subpoena issued on Trump Media was “looking for a subset of the same or similar documents requested in the subpoena against with Digital World and its directors.”

The expanded investigation risks delaying the completion of the merger, which would give Trump’s company and its social media platform, Truth Social, up to $1.3 billion in capital. , in addition to listing on the stock market.

The Investigation of the SEC focused on whether there were serious discussions between Digital World and Trump Media’s management before the company’s special purpose acquisition, or SPAC, went public in September, and if so, at star those conversations are not disclosed in the specified file. SPACs, which raise money to the public in hopes of finding a merger candidate, must not have an acquisition goal in mind when they raise money from investors.

Regulators have also requested information about Digital World’s securities trading activities prior to the merger announcement in October. A few weeks before the merger announcement, there were is a huge surge in trading of a Digital World Warrant – a security that grants the holder the right to buy shares at a specified price.

Trump Media is based in Sarasota, Fla., and is led by Devin Nunes, a former Republican congressman who became chief operating officer this year. Mr. Trump, who has a licensing agreement with the company, is president.

In a statement, Trump Media said it “will continue to cooperate fully with requests for our planned merger and will comply with the subpoenas we recently received, There are no subpoenas directed at the company’s president or chief executive officer.”

It is not clear which current and former employees at Trump Media received the subpoenas.

Truth Social, a Twitter-like platform, remains the company’s main product. Mr. Trump has, over the past few months, become a regular poster on the platform.

This week, he repeatedly used the platform to criticize the testimony of a former White House aide, Cassidy Hutchinsonbefore the January 6 committee of Congress.

Trump Media has called Truth Social a “free speech alternative” to Twitter, which permanently banned the former president from using its platform following the attack on the Capitol on January 6, 2021.

Maggie Haberman contribution report.

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