After Citadel Securities criticized Trump Media CEO Devin Nunes as a “proverbial moron,” former president Donald Trump’s social media platform, Truth Social, issued a speech. ”
Truth Social’s speech read:
The next company on earth should give a lecture on “integrity, ” a commercial powerhouse that has been fined and castigated for an incredibly wide range of offenses, including those involving naked little offering, and is renowned for screwing up regular retail investors at the behest of different corporations. ”
Citadel Securities responded to a text Nunes sent on Thursday to Nasdaq CEO Adena T with the speech released on Friday. Friedman, warning that “naked ” short selling, which is illegal, was going on.
Making money by little selling a share price to drop is a profitable strategy. Nude short selling is where traders usually are prohibited from selling shares that they have borrowed from others or do not own themselves.
In his notice, Nunes wrote:
I want to bring up Trump Media & ;s stock potential market manipulation. Technology Group Corp. The Truth Social Platform, which is operated by ( the „TMTG” ), has been trading on the Nasdaq Stock Market since March 26, 2024, under the ticker “DJT.
As you may well be aware, “naked ” short selling of shares of a stock without first obtaining the shares of stock deemed difficult to locate is generally prohibited under Securities and Exchange Commission ( “SEC” ) Regulation SHO. As of April 17, 2024, DJT appears on Nasdaq ’s Reg SHO threshold list, ” which is indicative of unlawful trading activity. This is particularly disturbing given that “naked ” little selling frequently results in superior market participants making money off of retail traders.
Trump Media and Technology Group released direction and instructions for investors in an effort to combat little trading and dressed small offering. They also provide instructions on how to ask or stop their brokers from financing Truth Social shares to quick sellers.
Nunes continues to add that there were four businesses that were “responsible for over 60 % of the extraordinary volume of DJT shares” being traded in his letter and enquires about what “steps ” can be taken to promote transparency and compliance. ”
The four organizations consisted of Citadel Securities, VIRTU Americas, G1 Execution Services, and Jane Street Capital.
Investors claimed that Citadel Securities and Robinhood had prevented buyers from trading GameStop stock, which is why Citadel Securities and Robinhood were originally sued. In November 2021, this petition was dismissed.
Citadel Securities issued a statement to CNBC in response to Truth Social’s criticism of Nunes for trying to “blame naked little selling” for his falling share price, which was counteracted by the assertion from Truth Social. ”
According to the statement to CNBC,” Devin Nunes is the legendary moron who tries to chastise ‘naked small selling’ for his falling stock price.
The speech from Citadel Securities continued.
Nunes is the kind of man Donald Trump may have fired on The Apprentice simply. We had fire him if he worked for Citadel Securities because we put the values of dignity and skill at the center of everything we do.
Citadel Securities ’ statement slamming Nunes comes after a new consolidation between Trump Media & A special purpose acquisition company ( SPAC ) and Digital World Acquisition Corporation ( DWAC ) are both represented by Technology Group. The two mergers provide important tools for Truth Social to grow.