The development comes days after Digital World said each of its board members received subpoenas from federal prosecutors over the SPAC deal with Trump Media & Technology Group (TMTG), the creator of the social media platform Truth Social.
The blank check firm said Friday that TMTG received subpoenas from the United States securities regulator and a federal grand jury in the Southern District of New York, adding that federal prosecutors have asked TMTG for the same documents they had asked for from Digital World and its administrators before. (https://bit.ly/3ny1in2)
TMTG agreed to merge with Digital World in October and the deal was expected to close by the second half of this year. The latest developments could delay or block the transaction.
The US Securities and Exchange Commission and the Financial Industry Regulatory Authority have been investigating the operation since late last year. Last month, Digital World said the SEC had also requested more information.
Some current and former TMTG members have also recently received grand jury subpoenas, according to the blank check company.
TMTG did not immediately respond to a request for comment.