- Chief Compliance Officer and VP of Legal Affairs, Arrow Electronics
By 
Kyle Brasseur2023-07-21T15:37:00
Digital World Acquisition Corp. (DWAC) faces a penalty of $18 million as part of a settlement reached with the Securities and Exchange Commission (SEC) regarding fraud allegations related to its dealings with Trump Media & Technology Group (TMTG).
The special purpose acquisition company (SPAC) was accused of making material misrepresentations to its investors by not disclosing its plans to acquire the social media company formed by former President Donald Trump. The SEC also alleged DWAC “mischaracterized and omitted information about the history of its interactions with TMTG” in filings with the agency, according to a press release Thursday.
DWAC will be fined $18 million in the event it closes a merger transaction, which it is still pursuing with TMTG. The penalty will be waived should the SPAC be dissolved and money returned to investors before January 2025.
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