Trump Media Stock Price Surges Following CEO’s Accusations of Market Manipulation

Shares of Trump Media & Technology Group surged over 9% on Wednesday after CEO Devin Nunes sent a letter to allies on Capitol Hill requesting an investigation into potential stock manipulation, CNBC reported.

In the letter addressed to lawmakers on Tuesday, Nunes alleged “strong indications of unlawful manipulation of DJT stock” and urged an investigation into whether any laws, including RICO statutes and tax evasion laws, were violated to hold accountable those responsible for any illegal activities.

He emphasized the importance of a thorough and speedy investigation into Trump Media & Technology Group, the parent company of former President Donald Trump’s Truth Social media platform, which should involve gathering trading data from various sources like the SEC’s Consolidated Audit Trail and the Financial Industry Regulatory Authority.

The letter was directed to House Judiciary Chair Jim Jordan (R-Ohio), Financial Services Chair Patrick McHenry (R-N.C.), Ways and Means Chair Jason Smith (R-Mo.), and Oversight and Reform Chair James Comer (R-Ky).

Trump Media went public last month and has seen significant volatility in its stock price. It has dropped approximately 41% in April after a 10% increase last week.

Last week, Nunes also wrote a letter to Nasdaq CEO Adena Friedman, calling for measures to prevent illegal short-selling and ensure transparency in trading firms’ disclosure of their short positions.

In response to Nunes’ accusations, a spokesman for Citadel Securities stated, “Devin Nunes is the proverbial loser who tries to blame ‘naked short selling’ for his falling stock price. Nunes is exactly the type of person Donald Trump would have fired on Apprentice. If he worked for Citadel Securities, we would fire him, as ability and integrity are at the center of everything we do.”

In “naked” short-selling, traders sell a short share without borrowing the stock, which is considered risky and illegal.