Digital World Acquisition will have to pay an $18 million civil penalty if it takes Truth Social Public
$DWAC is the company that was aiming to take Donald Trump's social media platform public. They just settled fraud charges with the SEC.
If it executes a final merger and takes Truth Social public, $DWAC will have to pay n $18 million civil penalty.
If the merger is not completed by Jan. 1st 2025 and DWAC returns investor's money, the SEC said it would agree to forgo the penalty.
About a month ago the SEC charge three Florida men with insider trading of $DWAC stock before it announced plans to merge with Trump's company.
DWAC had falsely stated that "neither DWAC nor its officers and directors had any discussions with any potential target prior to the IPO."
The SEC also found that DWAC's former CEO, Patrick Orlando, failed to disclose conflicts of interest related to a separate deal he made with Trump Media & Technology Group.