Trump Media Requests SEC Investigation Into Alleged Short Selling of DJT Stock

TLDR

• Trump Media & Technology Group (TMTG) has asked the SEC to investigate UK-based Qube for alleged illegal short selling of DJT shares
• TMTG claims Qube disclosed a short position of 6 million shares in Germany but not in other jurisdictions
• The company alleges Qube’s short position has nearly doubled to 11 million shares
• TMTG faces its own challenges with stock down 35% this year and operating losses of $400 million
• Trump’s media company has been expanding into crypto partnerships, including a deal with Crypto.com

Donald Trump’s media company has called for a federal investigation into what it describes as suspicious trading activity in its stock. In a letter sent Thursday to the Securities and Exchange Commission (SEC), Trump Media & Technology Group (TMTG) alleged that UK-based hedge fund Qube Research & Technologies may have engaged in “illegal short selling” of TMTG shares.

The company behind Truth Social claims that Qube disclosed a short position of about six million shares in Germany on April 10, worth approximately $105 million. TMTG alleges that Qube failed to properly inform regulators in its own jurisdictions about this position.

According to TMTG, third-party sources indicate that Qube’s position has nearly doubled to 11 million shares since the initial disclosure. “We urge you to immediately investigate this suspicious trading and report your findings back to TMTG and any relevant civil and criminal authorities,” a company representative wrote in the letter to SEC Acting Chairman Mark Uyeda.

Stock Performance Issues

TMTG’s call for an investigation comes as the company faces mounting challenges of its own. The stock has been on a downward trend, closing at $22.04 on Thursday, which represents a 35% decline since the beginning of 2025.

The company’s financial situation appears precarious. According to its financial disclosures, TMTG finished last year with less than $4 million in revenue while reporting operating losses of $400 million.

TMTG has also been dealing with legal troubles. The company is currently under investigation regarding whether its Truth Social platform may have facilitated money laundering or had connections to Russian actors.

In its memo to the SEC, TMTG noted that its stock had appeared on Nasdaq’s Regulation SHO Threshold Security List for more than two months in 2024, which it cited as further evidence of potential market manipulation. The company described American equities exchanges as potentially operating as “an opaque free-for-all reminiscent of a third-world casino.”

Crypto Connections

While facing these challenges, TMTG has been actively pursuing partnerships in the cryptocurrency sector. The letter to the SEC comes as Trump Media has been increasing its involvement with various crypto industry players.

One such partnership is an exclusive deal with Crypto.com for a series of not-yet-launched ETFs. The company is also launching Truth.Fi, described as “a financial services and FinTech brand incorporating America First investment vehicles.”

In a separate but related development, World Liberty Financial, an Ethereum-based decentralized finance platform backed by President Trump and his family, recently received a $25 million investment from market maker DWF Labs. The investment was made in WLFI tokens, the native token of the platform, which aims to provide crypto borrowing and lending services.

Trump’s growing connections to cryptocurrency projects come at a time when crypto-related legal cases are citing his administration’s policy shifts. In one unusual case, two brothers charged with stealing $25 million worth of Ethereum have argued that their case should be dismissed based on new Department of Justice crypto policies they claim suggest that what they allegedly stole cannot be considered property.

TMTG’s request for an SEC investigation represents the latest in a series of legal and regulatory challenges the company has initiated against other entities. In January, the company sued a Brazilian Supreme Court judge, claiming he violated U.S. free-speech protections. In 2023, TMTG filed defamation lawsuits against 20 media organizations, cases which remain ongoing.

Qube Research & Technologies did not immediately respond to requests for comment regarding TMTG’s allegations.

TMTG describes itself as having a mission “to end Big Tech’s assault on free speech by opening up the Internet and giving people their voices back.” In addition to Truth Social, the company operates Truth+, which it describes as “a TV streaming platform focusing on family-friendly live TV channels and on-demand content.”

The allegations regarding short selling focus specifically on disclosure practices. TMTG claims that “a U.K.-based entity, with a data center in Iceland, only disclosed these short sales in Germany,” raising questions about the timing and methods of Qube’s trading activities.

With DJT stock continuing to face pressure, Trump Media’s regulatory complaint highlights the increasingly complex intersection of politics, media, finance, and cryptocurrency that has come to characterize the company’s operations.