Truth Social Parent Company Subpoenaed By Grand Jury, Regulators

The Truth Social app is seen on a smartphone in front of an image of former President Donald Trump
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News & Politics
Damir Mujezinovic

Former President Donald Trump vowed to launch his own social media company after being banned from virtually all major platforms in the aftermath of the January 6 attacks on the U.S. Capitol.

Called Truth Social, Trump's app has attracted millions of users, predominantly conservatives who have left traditional platforms due to censorship.

Truth Social went live in February, but its parent company, Trump Media & Technology Group (TMTG), is already being investigated by authorities.

Truth Social Subpoenaed

As reported by Fortune, TMTG received subpoenas last week from a grand jury in New York and the Securities and Exchange Commission.

Last year, investors committed to pumping more than $1 billion into TMTG, but the deal cannot go through until Digital World Acquisition Corp. purchases TMTG.

Due to the investigations, it is unclear if the merger will even take place, so Trump is unable to take his company public.

As the publication noted, Digital World is a blank-check company, and these companies are typically "allowed to sell stock to the public quickly without the usual regulatory disclosures and delays, but only if they haven’t already lined up possible acquisition targets."

Who Received The Subpoenas?

The Truth Social app is seen on a smartphone
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According to a public disclosure released on Friday, several employees of Trump's company received subpoenas from both the grand jury and the Securities and Exchange Commission.

Trump himself -- who is the chairman of the company -- was not subpoenaed.

Digital World, on the other hand, has been under investigation by the Securities and Exchange Commission for possible violations for months, which has had a major impact on its stock.

Truth Social Is Struggling

According to a report from Reuters, Truth Social is struggling to develop a user base and grow as a platform.

Engineers and tech firms are reportedly refusing to work for a company associated with Trump, and the ongoing investigations have additionally spooked them.

"The reluctance of potential staffers and partners to work with TMTG is as practical as it is political: The firms fear an association with Trump will cost them customers, and tech workers worry it could hurt their careers," individuals briefed on the matter explained to Reuters.

Working With Big Tech

Facebook, Apple, Amazon, Netflix, Google icons seen on a smartphone
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TMTG officials have made it clear they do not intend to work with Big Tech platforms, with CEO Devin Nunes saying Truth Social will not rely on companies such as Google.

For political reasons, Truth Social has refused to use Amazon Web Services (AWS), the world's best-known cloud computing platform.

Instead, Trump's company has relied on small cloud providers such as Rumble and RightForge, which is also causing considerable issues, according to Reuters.

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