The fraudulent activity related to Truth Social resulted in the conviction of two investors who admitted to using confidential information to make trades.
According to CNN, Florida venture capitalist Michael Shvartsman and his brother Gerald Shvartsman confessed on Wednesday to engaging in insider trading connected to the significant transaction that made former President Donald Trump’s social media company public.
Both brothers admitted in New York to committing securities fraud, which could lead to a maximum prison term of 20 years, as stated by federal prosecutors.
Every aspect of Trump’s Truth Social deal has displayed signs of a scam, involving various untrustworthy individuals seeking personal financial gain.
People who invest in Trump Media are likely to experience financial losses. It would be beneficial for the Trump supporters investing in Trump Media if Trump decides to retain his shares instead of selling them.
Once Trump sells his shares, the stock is expected to plummet, unless it happens sooner, since the company is unproductive and lacks transparency about its user base.
The unstable structure of Truth Social is beginning to collapse. The amount of money Trump will swindle before the inevitable collapse affects others remains uncertain.
