Trump SPAC Digital World Acquisition ( NASDAQ: DWAC ), which is taking Trump's social media company and Truth Social app public, dropped 10% as a House committed recommended that the former President be prosecuted for his role in the Jan. 6 assault on the U.S. Capitol.
The committee vote unanimously Monday to to refer the ex President for prosecution related to multiple office including insurrection, according to media reports , including Bloomberg . The committee recommendation doesn't require the Dept. of Justice to prosecute Trump and it has no formal legal impact.
The news comes after Digital World ( DWAC ) disclosed on Friday the SPAC's chief financial officer and two board members have resigned in recent weeks.
Digital Word ( DWAC ) shares have plunged 82% since hitting highs in early March as the SPAC has dealt with several regulatory investigations, continued delays on its deal to merge with Trump's media company and concerns that the former President would return to Twitter ( TWTR ) after Elon Musk allowed him back on the platform.
Twitter ( TWTR ) announced Sunday it would no longer allow users to promote their accounts on at least seven other major social media sites, i ncluding Facebook and Instagram of Meta Platforms ( META ) as well as Truth Social.
Even an announcement on Monday afternoon that direct messaging is now available on the iOS, Android, and web versions of Truth Social failed to halt the stock decline.
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Trump SPAC DWAC falls as Jan. 6 panel urges criminal prosecution for ex President