Watchdog: Investment Firms Should Cut Ties with Trump SPAC

Washington, D.C. — Today, in light of growing questions and controversy surrounding Donald Trump’s new social media venture Trump Media & Technology Group, government watchdog Accountable.US called on major investment firms to cut their ties with Digital World Acquisition Corp., the special purpose acquisition company (SPAC) slated to merge with Trump’s media company and take it public. 

Major firms including EF Hutton, Radcliffe Capital Management, K2 & Associates, Boothbay Fund Management, and D.E Shaw & Co. all appear to currently boast significant holdings in the SPAC. 

“Investment firms should be very wary of maintaining their ties to the SPAC backing Trump’s new social media company,” said Kyle Herrig, president of Accountable.US. “With Donald Trump’s history of harmful — and often failed — business ventures and an SEC probe already underway, it’s crystal clear that backing Trump Media & Technology Group will only serve to put investors in a deeply unflattering spotlight.” 

So far, Saba Capital Management and Lighthouse Investment Partners both sold their unrestricted shares of Digital World Acquisition Corp. after the Trump Media & Technology Group merger was announced. 

Digital World Acquisition Corp. made headlines this week when infamous Trump allied congressman Devin Nunes announced his plans to resign from Congress next month to serve as Trump Media’s CEO. The news followed reports that the SPAC is under investigation by the FEC, which is looking into its investors. 

Accountable.US also sent a letter to House Oversight Committee leadership this morning asking the panel to investigate possible efforts by former President Donald Trump during the closing months of his administration to curry favor with key allies of Brazilian President Jair Bolsonaro in exchange for help with Trump Media & Technology Group. More information is available in Salon. 

See the watchdog’s full analysis of the investment groups here.

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