Trump-Linked SPAC Settles Fraud Charges with SEC for $18 Million

The Securities and Exchange Commission (SEC) has charged Digital World Acquisition Corporation (DWAC), a special purpose acquisition company (SPAC), for making material misrepresentations in forms filed with the SEC regarding its initial public offering and proposed merger with Trump Media & Technology Group Corp. The SEC found that DWAC failed to disclose its plan to acquire TMTG prior to the IPO and misled investors and the SEC. DWAC has agreed to a cease-and-desist order, pay an $18 million penalty if the merger transaction closes, and ensure that any future filings are accurate and complete.