Digital World Acquisition Corp. (DWAC), the special-purpose acquisition company which plans to merge with former President Donald Trump's media company Trump Media & Technology Group, is being investigated by the Securities and Exchange Commission, the company said Monday.

Trump is planning to launch a social media platform called TRUTH to compete with Facebook and Twitter and plans to encourage “an open, free, and honest global conversation without discriminating against political ideology."

Shares of Digital World Acquisition Corp surged 800% after the deal was announced, prompting the SEC and Financial Industry Regulatory Authority (FINRA) to investigate, The Washington Post reported.

The investigations by the regulators were disclosed in an 8-K filing which was detailed in the terms of the private investment in public equity whose subscribers will get shares worth $33.60 per share, according to CNBC.

The SEC and FINRA investigations were disclosed at the very end of the filings. The regulators say there has been no determination of a violation of any laws or wrongdoing by DWAC.

DWAC’s filing comes three weeks after Sen. Elizabeth Warren, D-Mass., asked SEC chair Gary Gensler to look into the merger. Warren noted that DWAC may have committed securities violations by holding private and undisclosed discussions about the merger as early as May 2021, while omitting this information (from the SEC) filing and other public statements.

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