The CEO of Trump Media, Devin Nunes, has urged House Republican committee leaders to investigate potential stock manipulation of the company’s stock. Nunes has raised concerns about “anomalous trading” of the stock and has requested an investigation into whether any laws, including RICO statutes and tax evasion laws, were violated. Trump Media began trading on the Nasdaq on March 26 and has been the most expensive U.S. stock to short as of early April. Nunes believes that brokers have a financial incentive to lend non-existent shares due to the high price of shorting the stock.
The purpose of the investigation, according to Nunes, is to protect the company’s shareholders and hold any perpetrators of illegal activity accountable. Nunes addressed the letter to four House committee leaders but did not receive an immediate response. The stock price of Trump Media, majority-owned by former President Donald Trump, has been trending downwards in volatile trading sessions. Despite initially surging in its trading debut, the stock has lost more than half of its value since then.
Nunes’ letter also escalates a feud with Citadel Securities, a capital markets firm founded by GOP megadonor Ken Griffin. Nunes previously mentioned Citadel Securities in a letter to Nasdaq’s CEO, Adena Friedman, regarding the apparent unlawful trading activities of DJT. More than 60% of DJT shares have allegedly been traded by just four market participants, including Citadel Securities. The firm responded to Nunes’ claims by criticizing him and accusing him of trying to blame falling stock prices on naked short selling.
In response to Citadel Securities’ statement, a spokeswoman for Trump Media criticized the firm, citing past issues related to naked short selling. The feud between Nunes and Citadel Securities seems to be intensifying as Nunes continues to call for an investigation into the alleged manipulation of Trump Media’s stock. The potential unlawful activities surrounding DJT have raised concerns about the integrity of the stock market and the impact on retail investors. It remains to be seen how this conflict will unfold and what actions will be taken in response to Nunes’ claims.
