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Trump’s social media company is reportedly under investigation by federal prosecutors in New York for an alleged money laundering case.
TMTG (Trump Media and Technology Group), in late 2021 and early 2022 received a combined $8 million in loans with potentially illegal origins. TMTG, the company which owns Truth Social, is under investigation, reported the Guardian, citing multiple unnamed sources familiar with the matter and a bank receipt mentioning the transfer.
The funds arrive from a trust and are passed through Paxum Bank, registered to the Caribbean island of Dominica. According to the report, the island is partly owned by Anton Postolnikov, who appears to be related to Vladimir Putin ally Aleksandr Smirnov, a Russian connection that paked the interest of the US attorney’s office for the southern district of New York.
The former co-founder of TMTG, Will Wilkerson stated that the organisation weighed money returns due to its unclear origins, but made a decision which otherwise returning $8 million would be a major hit as funds were dwindling. TMTG refused to comment on the matter, however, numerous sources have made further contact, pressing for information from Paxum bank and Trump himself, to shed more light on the situation.
In 2021, SEC (Securities and Exchange Commission) introduced a preliminary inquiry into TMTG’s merger with DWAC (Digital World Acquisition Corp) which is still pending. DWAC is a special-purpose acquisition corporation whose potential tie-up with TMTG would allow public trading. That same year, Financial Industry Regulatory Authority began investigating the deal, which focused on a frenzy of trading at DWAC in the weeks before it announced merger plans with TMTG, reported the New York times.
Mr Wilkerson, the former TMTG executive made an allegation that in 2021 the Trump organisation held “substantive discussions” about the merger that it did not disclose which is a violation of disclosure laws. In a 2022 court filing, TMTG argued that those discussions were too preliminary to demand disclosure. The organisation mentioned that it maintains “a culture of compliance.”