Devin Nunes, CEO of Trump Media & Technology Group (TMTG) and former president Donald Trump’s media company, has raised concerns over what he describes as “severe” anomalies in the company’s stock trading patterns. According to a recent report by Reuters, Nunes has taken a proactive step by reaching out to Nasdaq CEO Adena Friedman, urging a formal investigation by the Financial Industry Regulatory Authority (FINRA).
In his communication, Nunes detailed his request to Congress to initiate this probe, focusing particularly on the trading activities from April 29 through June. He emphasized the need for electronic blue sheets, essential tools for scrutinizing trading irregularities, to understand the full scope of the issue.
The call for an investigation comes at a tumultuous time for TMTG’s stock, which experienced a dramatic surge in March, only to plummet by 70% subsequently, before stabilizing at a price of $46. This volatility was notably influenced by the aftermath of Trump’s conviction for falsifying business records to affect the 2016 presidential election, which saw TMTG shares drop by 5.3% in a single day.
Nunes’s request to Nasdaq includes a plea for assistance in investigating “naked” short sellers and ensuring full cooperation with any congressional or other probes into these matters. He insists that the trading anomalies linked to TMTG shares, supported by SEC data, are escalating in severity and require immediate attention.
Specifically, Nunes has pinpointed several firms, including Citadel Securities, Jane Street Capital, and UBS, seeking data that could shed light on potential market manipulations. Previously, he had approached Friedman regarding warnings of possible manipulation in TMTG’s stock, seeking support to mitigate any such issues.
This investigation is set against the backdrop of Trump’s venture into media with Truth Social, following his ban from Twitter and Facebook after the January 6 Capitol riots. Despite the high stakes, a regulatory filing in April revealed that Trump Media generated only $4 million in revenue but incurred net losses nearing $60 million in 2023, leading to significant market repercussions.
The unfolding scenario not only highlights the financial challenges faced by Trump Media but also underscores the broader implications of stock trading practices that may affect shareholder value significantly. As Nunes pushes for a deeper investigation, the financial community and investors are keenly watching how these developments will impact TMTG’s future and its controversial figurehead’s financial interests.