Former President Donald Trump’s social media platform, Truth Social, issued a statement after Florida-based marketing firm Citadel Securities slammed Trump Media CEO Devin Nunes as being a “proverbial loser.”
The statement from Truth Social read:
Citadel Securities, a corporate behemoth that has been fined and censured for an incredibly wide range of offenses including issues related to naked short selling, and is world famous for screwing over everyday retail investors at the behest of other corporations, is the last company on earth that should lecture anyone on “integrity.”
The statement from Truth Social issued on Friday came after Citadel Securities responded to a letter Nunes had sent on Thursday to Nasdaq CEO Adena T. Friedman, warning that “naked” short selling, which is illegal, was going on.
US President Donald Trump (C) shakes hands with US Representative Devin Nunes (R-CA) as House Majority Leader Kevin McCarthy (R-CA) (L) looks on after signing a presidential memorandum focused on sending more water to farmers in California’s Central Valley, during a meeting in Scottsdale, Arizona, on October 19, 2018. (Photo credit should read NICHOLAS KAMM/AFP via Getty Images)
Short selling is a way to make money by betting on a stock price to fall. Naked short selling is where investors sell shares that they have not borrowed or do not own themselves, and is generally banned.
In his letter, Nunes wrote:
I write to bring your attention to potential market manipulation of the stock of Trump Media & Technology Group Corp. (“TMTG”), which operates the Truth Social Platform and has traded on the Nasdaq Stock Market under the ticker “DJT” since March 26, 2024.
As you know, “naked” short selling-selling shares of a stock without first borrowing the shares of stock deemed difficult to locate-is generally illegal pursuant to 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 troubling given that “naked” short selling often entails sophisticated market participants profiting at the expense of retail investors.
In an effort to tackle short selling and naked short selling, Trump Media and Technology Group released guidance and instructions for investors with the company on how to request or prevent their brokers from lending Truth Social shares to short sellers.
In his letter, Nunes continues to add that there were four corporations who were “responsible for over 60% of the extraordinary volume of DJT shares” being traded and asks what “steps” can be taken to “foster transparency and compliance.”
The four companies consisted of Citadel Securities, VIRTU Americas, G1 Execution Services, and Jane Street Capital.
Citadel Securities was previously sued, along with Robinhood, a stock market trading app, regarding allegations from investors that Citadel Securities and Robinhood had prevented investors from trading GameStop shares. This lawsuit was dismissed in November 2021.
The statement from Truth Social came in response to Citadel Securities issuing a statement to CNBC, in which Nunes was slammed for trying to “blame ‘naked short selling’ for his falling stock price.”
“Devin Nunes is the proverbial loser who tries to blame ‘naked short selling’ for his falling stock price,” the statement to CNBC read.
The statement from Citadel Securities continued.
‘Nunes is exactly the type of person Donald Trump would have fired on The Apprentice. If he worked for Citadel Securities, we would fire him, as ability and integrity are at the center of everything we do.
Citadel Securities’ statement slamming Nunes comes after a recent merger between Trump Media & Technology Group and Digital World Acquisition Corporation (DWAC), a special purpose acquisition company (SPAC). The merger between the two unlocks significant resources for Truth Social to expand.
