Thread by @TristanSnell

What did the Trump SPAC potentially do wrong? The SPAC may have been rigged, violating the rules around SPACs and how they're supposed to work.

1) SPACs are "special purpose acquisition corporations." Investors put money in. The SPAC then goes out and buys an existing company.

2) A SPAC is *not* supposed to have a deal already pre-locked into place at the time the SPAC goes public and the investors buy in. Otherwise the SPAC would basically be a Trojan horse to sneak some other company onto the public stock market.

3) There have been reports that the "Trump SPAC," Digital World Acquisition Corp. (DWAC) was in touch with Trump's social media arm before DWAC went public -- and basically that the entire deal was rigged.

4) If the Trump/DWAC marriage was pre-arranged in advance, that's not only a violation of SEC and FINRA rules, it's also potentially securities fraud.

At that point, any of the DWAC investors could sue DWAC and/or Trump for fraudulent misrepresentations to induce them to invest.

5) Perhaps even more dangerous for DWAC and Trump, the NY Attorney General's office has jurisdiction and could get involved under NY's Martin Act, which allows the AG to sue for securities fraud committed in NY (i.e. where the stock markets are).

6) There are other allegations that the entire DWAC project is a "pump-and-dump" scheme; there may be lawsuits or investigations on that as well.

All in all, this is suddenly becoming a major new legal headache for Trump.