Trump's Truth Social Deal In Trouble After Grand Jury Issues Subpoenas

Digital World Acquisition - the group trying to buy out Donald Trump's Truth Social - has been hit with subpoenas from a grand jury, a move that suggests investigators believe criminal activity has taken place. The group had previously been forthcoming about the SEC investigating them, but the fact that a grand jury is now involved absolutely points to the possibility of criminal charges being filed against the group. Farron Cousins explains what's happening.

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*This transcript was auto-generated. Please excuse any typos.

Well folks more trouble for Donald Trump's truth, social social media company, as digital world acquisition, the, uh, uh, company that is attempting to merge, buy out. However you wanna describe it. Uh, Donald Trump's entire media conglomerate, they've been hit with subpoenas by a grand jury. Now this was actually revealed in a filing by digital world acquisition last week, first reported yesterday by the New York times. And according to those reports, what this grand jury is looking at is very similar to what these securities and exchange commission is looking at. Now, we've talked about that particular case and the grand jury of course, seems to be looking at the same thing. But before I get into what they're looking at, the fact that a grand jury is looking at this is a crystal clear indication that they believe a criminal activity has taken place, you know, 99.9% of the time when a grand jury is impaneled it's for criminal charges.

So very bad for digital world, very bad for Donald Trump's, uh, media corporation. So what are they looking at again? Pretty much, same thing as the sec. They're trying to find out if there was any improper communication between digital world and Donald Trump's, uh, people, basically his entire media company, because digital world as a special, you know, spec, whatever it is, um, you're not allowed legally to have an acquisition target prior to raising money from your investors. The way it's supposed to work is all the investors come in with digital world. Everybody puts their big money in a pool. Once the money is in the pool, then they have the discussions, okay, where do we invest it? Now, what these investigators think may have happened is that digital world was already talking with Donald Trump's people prior to raising the money. So if they had already worked out an agreement like, Hey, we are going to raise money and then we're going to buy you out. That's illegal. The only communication they could have had, would've been after they had raised the money. They could say, Hey, we just raised a bunch of money. We'd like to buy you out. Totally legal doing it prior to raising the money, a hundred percent illegal. And again, the grand jury has now been impaneled. The S E C has been investigating this since late last year. And if they've already hit the point after investigating it, you know, for seven, eight months at this point, if now there's a grand jury, it would be

A CR a clear, as I said, indication that the sec found something that looks criminal. So prosecutors in Manhattan have now impaneled a grand jury to really get to the bottom of this. Now, there is another thing, another piece of this that actually could be the focus of any criminal investigation that does not involve Donald Trump. Uh, you had the director of digital world. Uh, they announced in a filing last week also that they have removed the director, cuz it turns out the D uh, director had a, uh, relationship with, uh, what is the name of the bank here? I'm sorry, rocket one capital capital, which is a Miami based hedge fund. He had a, a prior relationship with this hedge fund that is also a focus of the investigation. He has now been removed as a director of digital world. So that could be what this is about, you know, was he working with the hedge fund after having improper contact?

And maybe that's the only criminal thing Trump's folks may be totally in the clear on this. We don't know because there's not a whole heck of a lot of information that has been revealed at this point. So this certainly is something to keep an eye on. Again, we don't have a ton of details. We only have little bits and pieces here and there, but no matter which way you slice it, if anything, with digital world, whether or not it involved Donald Trump's group, if they did anything illegal, that is 100% going to kill the deal, which could very easily kill Donald Trump's entire media company.