Devin Nunes, CEO of Trump Media & Technology Group Corp DJT, the owner of Donald Trump‘s social networking site Truth Social, has formally raised concerns about alleged stock manipulation with the Louisiana Office of Financial Institutions.
What Happened: Nunes, in a letter addressed to Commissioner P. Scott Jolly, highlighted that TMTG’s stock has been consistently listed on the Nasdaq Reg SHO Threshold List since Apr. 2. This listing often indicates continuous failures to deliver, hinting at potential illegal “naked” short-selling activities.
Over the past 30 trading days, an extraordinary volume of DJT shares traded has been shorts, leading to a significant number of FTDs. SEC data shows that FTDs exceeded 1 million DJT shares on eleven separate trading days between Apr. 9, and Apr. 30, peaking at over 2.3 million FTDs on Apr. 29.
“The apparent anomalies surrounding the trading of DJT have become more chronic and alarming to TMTG,” Nunes said.
Nunes suggested that these anomalies could indicate potential illegal collusion among various market participants, including prime brokers, clearing brokers, executing brokers, options market makers, hedge funds, custodian banks, and other fiduciaries.
The letter urges Commissioner Jolly to initiate an immediate investigation to determine the extent of any illicit activities, particularly concerning violations of Louisiana Securities Law and the relevant regulations.
Nunes called for an examination of documents and testimony from several firms that facilitate short sales, including Apex Clearing, Citadel Securities, Clear Street, Cobra Trading, Cowen and Company, Curvature Securities, G1 Execution Services, Jane Street Capital, StoneX Securities, TradePro, Velocity Clearing, and VIRTU Americas.
Why It Matters: The TMTG’s stock has been under scrutiny for a while now. Despite an aggressive media push, Truth Social, a social media platform owned by TMTG, reportedly experienced a sharp drop in its U.S. user base this month.
Nunes expressed his readiness to assist the investigation in any way possible and mentioned that he has previously communicated similar concerns to Members of Congress and Nasdaq Chair and CEO Adena T. Friedman.
This was followed by a $327.6 million loss in the first earnings report since the company went public. Trump Media reported $770,500 in revenue for the first quarter, primarily from its "nascent advertising initiative.
Meanwhile, market experts have warned that a Trump victory could have a more significant impact on the debt market than a Biden win.
Price Action: DJT surged to $49.93, marking a nearly 9% increase on Tuesday’s close. In after-hours trading, however, the stock dipped by 2.10%. Year to date, DJT has soared by an impressive 186.13%, according to the data from Benzinga Pro.
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
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