Trump Media Merger Partner Settles Fraud Charges with SEC for $18M, Lifting Hopes for Deal Completion

Digital World Acquisition Corp. agreed to pay an $18 million penalty to settle SEC charges it misled investors about its plans to acquire Trump Media & Technology Group.
If completed, the merger would give Trump Media over $1 billion in cash, but it faces a September deadline that could force Digital World to liquidate.
The SEC said Digital World violated antifraud laws by not disclosing its merger plans prior to going public as a SPAC.
Digital World shares surged over 50% on news of the settlement, as it was seen as increasing the chances of completing the merger.
The deal has faced delays and Digital World still needs shareholder approval for an extension, while Trump Media struggles to gain traction.