Major Investors In Trump's 'Truth Social' Network Sell Out

The launch of Donald Trump's new social media company "TRUTH" has hit another bump as some early key investors are pulling out after discovering he is one of the principals behind, Tom Boggioni reported for Raw Story.

Photo Insert: Former US President Donald Trump's 'Truth Social' has been saddled by a series of snags since its launch, the latest being the investor sellouts.

According to a report from the Ed Mazza of Huff Post, one hedge fund manager lashed out when he found out about Trump's involvement. "Boaz Weinstein's Saba Capital had been a major investor in Digital World, a special purpose acquisition company (SPAC) formed for the purpose of acquiring another company.

As is common in SPAC arrangements, investors put their cash in before the acquisition target was chosen. When Weinstein learned it would be with Trump's firm, he bailed," Mazza said.

Another unnamed investor, who reportedly held a 10 percent stake in the company, was considerably more graphic when talking about being taken in by Trump's latest venture and he "sold everything as soon as he could," reports Mazza.

"The idea that I would help [Trump] build out a fake news business called Truth makes me want to throw up," he said.

In his report for Salon, Brett Bachman said documents filed with the Securities and Exchange Commission (SEC) confirmed that Digital World Acquisition Corp. (DWAC) was formed just a few weeks after Trump's 2020 loss, with the stock brokerage firm Kingswood Capital Markets as the sole underwriter.

As New York Magazine noted on Thursday, Kingswood used to be called EF Hutton — a 1980s financial powerhouse that was eventually sold after it was revealed the firm was involved in illegal mob-related ventures. Trump also famously bragged about dealing with the New York City Mafia during his years as a real estate developer.

DWAC's official address is listed as a WeWork office in Miami, while its management team is also drawing a fair bit of scrutiny. Patrick Orlando, the firm's CEO, appears to be a SPAC veteran whose most recent offering is Yunhong International, another blank-check company located in Wuhan, China.

The firm's CFO is a strange pick as well: Luis Orleans-Braganza, a top deputy to Brazilian President Jair Bolsonaro and current member of the country's parliament.

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