You Can't Say We Didn't Warn You About Truth Social
I first wrote about the apparent financial scam that is Truth Social back in 2021, and the company's utilization of something called a SPAC. As the Wall Street Journal described it then:
Also called a blank-check firm, a SPAC is a shell company that lists on a stock exchange with the sole intent of merging with a private firm to take it public. The private company then gets the SPAC’s place in the stock market. SPAC mergers have exploded in popularity in the past year for many startups because they are allowed to make projections about their business. Those aren’t allowed in normal IPOs.
Well, here's what the Washington Post headlined this morning: "Trust linked to porn-friendly bank could gain a stake in Trump’s Truth Social, ES Family Trust offered $8 million in loans to Trump Media in an unusual deal criticized for conflicts of interest". They go on to say:
An obscure financial entity with connections to a Caribbean-island bank that bills itself as a top payment service for adult entertainment sites would gain a sizable stake in former president Donald Trump’s media company if its merger deal proceeds, according to internal documents a company whistleblower has shared with federal investigators and The Washington Post.