Trump Media & Technology Group (DJT.US) accuses agency of illegal short selling, demands SEC investigation.

The Trump Media Technology Group, controlled by former US President Trump, announced on Thursday that it has formally requested the US Securities and Exchange Commission (SEC) to investigate the recent short-selling activity of its stock. The company operates the social platform Truth Social, in which Trump himself holds a 53% stake. Regulatory filings show that the hedge fund Qube Research and Technology Company disclosed a short position of about $105 million in Trump Media stock on Monday. In a memorandum submitted to the SEC on Thursday, DJT alleged that Qube's short-selling activity may involve "suspicious activity," and specifically stated that "there are signs of illegal naked short selling of DJT stock" - a trading practice that is explicitly prohibited in the US, which involves selling short without first borrowing the stock. The memorandum emphasized: "We urge the agency to immediately investigate these suspicious transactions and report the findings to DJT and relevant civil and criminal law enforcement agencies." An SEC spokesperson declined to comment on this, and DJT and Qube had not responded to requests for comment at the time of publication. Earlier this week, Qube explained that its position adjustments are entirely driven by quantitative models, "not specific judgments on the company's fundamentals." White House spokesperson Anna Kelly responded to conflicts of interest questions via email, emphasizing that the president's assets are managed by a trust fund overseen by his children, and there is "no conflict of interest." The operation mechanism of short selling is: investors borrow stocks and immediately sell them, betting that the stock price will fall so they can buy them back at a lower price to return them and profit from the difference. Naked short selling is a violation, referring to selling short without borrowing the stocks beforehand or confirming the availability to borrow them. The White House, in response to questions about potential conflicts of interest, pointed out that the president's assets are managed by a trust fund overseen by his children. White House spokesperson Anna Kelly stated in an email: "There is no conflict of interest." This is not the first time a media company under Trump's ownership has raised similar allegations. In April 2023, the company disclosed in filings to the SEC that it had issued a warning to the NASDAQ Stock Exchange regarding "potential market manipulation" of its stock.