Request from Trump Media to Congress for Investigation into Allegations of Market Manipulation

The CEO of Trump Media & Technology Group, Devin Nunes, has requested that Congress investigate allegations of market manipulation surrounding the company’s stock. Nunes, a former Republican congressman, raised concerns about “anomalous trading” and potentially “unlawful manipulation” of Trump Media’s stock. He specifically mentioned the practice of “naked” short selling, where traders sell shares without borrowing them first, which is illegal.

Nunes sent a letter to top Republican lawmakers in the House, including House Ways and Means Chair Jason Smith, Oversight and Reform Chair James Comer, Financial Services Chair Patrick McHenry, and Judiciary Chair Jim Jordan. In his letter, Nunes expressed worries about the company’s stock being manipulated and becoming the “single most expensive stock to short in U.S. markets.” He argued that this type of trading often results in sophisticated market participants profiting at the expense of retail investors.

The concerns raised by Nunes come as Trump Media’s stock price has experienced volatility and is currently trending downward. Since its debut on the Nasdaq last month, the stock price has dropped by about half after initially shooting up to approximately $80 per share.

Nunes also alleged that four companies are responsible for more than 60 percent of the trading volume of Trump Media shares. One of these firms is Citadel Securities, owned by billionaire Ken Griffin. In response to an earlier letter from Nunes, Citadel Securities accused him of blaming “naked short selling” for the falling stock price. Trump Media fired back, criticizing Citadel Securities for its past offenses related to naked short selling and accusing the company of harming retail investors.

In his latest letter, Nunes called on House lawmakers to investigate the unusual activity surrounding Trump Media’s stock and determine if any laws, including Racketeer Influenced and Corrupt Organizations Act (RICO) statutes and tax evasion laws, were violated. He also urged the lawmakers to obtain trading data from the Securities and Exchange Commission’s database.

Meanwhile, former President Donald Trump is set to receive a stock bonus worth $1.3 billion from Trump Media, boosting his overall stake in the company to $4.1 billion. The windfall comes at a time when Trump’s legal fees and fines are accumulating, including a $454.2 million judgment in his New York civil fraud case. Although he has agreed not to sell any of his company’s shares before September, the stock market provides an opportunity for him to divest shares easily.

As the allegations of market manipulation surrounding Trump Media unfold, it remains to be seen how Congress will respond to Nunes’ request for an investigation. With the former president’s wealth at stake and ongoing legal battles, the outcome of this situation could have significant implications for both Trump and the future of Trump Media.