Truth Social CEO Makes Bombshell Allegation About Stock Manipulation

Truth Social CEO Makes Bombshell Allegation About Stock Manipulation

Congress is facing calls to investigate what Trump Media & Technology Group CEO Devin Nunes has labeled as the “potential manipulation” of its stock price.

Trump Media had a highly successful debut in March but has since experienced a significant decline, dropping from a high of about $79 per share on its first day of trading to $23 last week, as reported by The Hill.

As of Wednesday, Trump Media’s stock price stood at around $32.

Nunes, a former Republican member of Congress, penned a letter to the chairs of the House Judiciary, Oversight, Financial Services, and Ways and Means committees, expressing concerns about the situation.

The letter, submitted to the Securities and Exchange Commission, described the fluctuations in the stock price as “an urgent matter concerning the potential manipulation of the stock of Trump Media & Technology Group Corp.”

“Since April 2, 2024, DJT has appeared every day on Nasdaq’s ‘Reg SHO threshold list,’ which is indicative of unlawful trading activity. This is particularly troubling given that ‘naked’ short selling often entails sophisticated market participants profiting at the expense of retail investors,” Nunes wrote.

“Reports indicate that, as of April 3, 2024, DJT was the single most expensive stock to short in U.S. markets by a significant margin, meaning that brokers have a significant financial incentive to lend non-existent shares,” Nunes wrote, highlighting that four companies account for 60 percent of the traded shares in Trump Media.

“We assess there are strong indications of unlawful manipulation of DJT stock,” Nunes asserted.

“I respectfully request that you open an investigation of anomalous trading of DJT to determine its extent and purpose, and whether any laws including RICO statutes and tax evasion laws were violated, so that the perpetrators of any illegal activity can be held to account,” he urged.

Nunes also referenced a December letter from 74 members of Congress, suggesting that Trump Media's situation is not unique.

A letter to Nasdaq's CEO, attached to an SEC filing, echoed Nunes's concerns about “unlawful trading activity.”

Citadel Securities, identified as a major mover of Trump Media shares, denied any illegal actions in a statement to CNBC, dismissing Nunes's allegations.

In response, a representative of Trump Media criticized Citadel Securities, accusing them of various offenses and challenging their credibility.

“Rather than support our common-sense efforts to promote transparency and compliance, Citadel Securities bizarrely targeted our CEO with an unhinged attack,” Trump Media stated in an SEC filing on Friday.

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