(RepublicanDaily.org) – Truth Social media, the Trump-sponsored social media company, has made cuts following staffing reductions at its parent political action committee company Trump Media and Technology Group made staffing cuts, Bloomberg reported. The media company has been under financial duress, and also faced a Federal investigation. The layoffs of “half a dozen” employees came as the group awaited U.S. regulators’ approval of the company’s upcoming merger with a SPAC, Business Insider reported.
New York federal prosecutors probed Truth Social “last year” to see if it had violated money laundering laws in connection with accepting $8m with “suspected Russian ties,” The Guardian reported. The company reportedly came under investigation over its preparations to merge with the blank check company Digital World Acquisition Corp, which is the company that was selected to take Truth Social public.
Truth Social’s staffing cuts come after months of reported problems at the company. Reports of financial issues go back early into the company’s activity history. Truth Social held a soft launch in the app store in February 2022. Media reports indicated financial problems at the firm in August. At that time, so-called “insiders” claimed that Truth Social’s owner company owed its internet hosting firm, RightForge, approximately $1.6 million in backdated payments, Axios reported.
In December, three executives “abruptly” departed Digital World Acquisition Corp, Forbes reported. The executives reportedly left due to ongoing regulatory investigations and “broader market chaos.” The filings indicated that the departing executives did not leave from disagreements with the firm related to any policies, business operations, or business practices, Forbes reported.
Earlier in March, an SEC filing indicated that Digital World Acquisition Corp had failed to pay all the listing fees it needed to keep its position on the Nasdaq stock exchange. The Form 8K document was filed on February 28 and warned that the Digital World Acquisition Corp had failed to pay “certain fees” that are required by Listing Rule 5250(f). The Form 8k document warned that the company would be delisted “unless it appeals this determination.” Digital World Acquisition Corp chose to appeal the determination and made plans to pay the Nasdaq fees and any fees that the Hearing Department decided on.
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