Toni Dimaano Tech 03.16.2023 00:Mar AM EDT

Trump Lays Off Truth Social Employees Amid Federal Regulation Probe

As it waits for US regulators to approve a merger, the parent company of Truth Social, the social media platform used by former President Donald Trump, has laid off several employees.

Business Insider writes that at Trump Media & Technology Group, about six employees were let go, including some prominent ones like chief technology officer William "BJ" Lawson.

The Situation Seems To Be Becoming Worse For Trump Social

Trump Media & Technology Group (TMTG), the parent firm of Trump's Truth Social platform, has not had much luck lately.

Yet, the situation for the former president's web business seems to be getting worse, according to multiple media reports.

The numerous investigations into Trump's company do not appear to be ending anytime soon, with at least one expanding to cover more possible wrongdoings.

Meanwhile, Trump Media is beginning to see new signs of financial strain as a result of the protracted process of trying to merge TMTG with a "blank check" company despite the numerous probes.

Small-scale layoffs implemented by TMTG, which, as previously mentioned, impacted executives like Lawson.

A special purpose acquisition company, or SPAC, called Trump Media is expected to merge with Digital World at the same time as the rumored layoffs.

Trump Media, which was established in 2021, is awaiting SEC approval of the merger agreement, Business Insider details.

Trump Media's general counsel asked for a probe of the SEC's examination of the transaction in a letter to Congress that was issued in February.

The "endless" review, according to the letter, was an unprecedented attempt to scuttle the sale without uncovering any misconduct.

On its website, Trump Media said that by building platforms where people may publish content without worrying about damaging their reputations, it hoped to level the playing field in the media and technology sectors.

Federal Authorities Are Probing Trump Media As Well

Federal prosecutors in New York are apparently looking into whether Trump Media broke any laws pertaining to money laundering as part of their investigation into the company.

Earlier, the criminal investigation was only concerned with the contentious, ongoing merger between TMTG and the dubious shell company, Digital World Acquisition Corp.

However, the federal authorities may now be investigating two payments totaling $8 million that were routed to TMTG via the Caribbean and may have come from a family member of an associate of Russian President Vladimir Putin.

According to Gizmodo, the company has cut roughly six employees, including executives, as a result of continuous financial difficulties.

The SEC is allegedly trying to deliberately sabotage the TMTG/DWAC merger, according to Trump Media's legal team.

It can be remembered that at the end of February, the company's legal team wrote to the exchange commission and requested that Congress look into the interest the watchdog organization had in TMTG.

However, note that despite being connected to Trump personally, TMTG withdrew the former president from its board soon before the commencement of the federal inquiries.

Following his broad exclusions from more popular social media networks due to his suspected role in sparking the riots on January 6, 2021, Trump established Truth Social.