June 7, 2024 The Sun Bay Paper Page 2 Cont on pg 3 Economic Freedom at Risk: The Unprecedented Market Attack on Trump Media Shares of Trump Media & Technology Group (NASDAQ: DJT) opened at $53.70 on Friday morning, May 31. They plummeted over 5% by the afternoon, closing at $49.09. In the aftermath of the Trump guilty verdict, shares of TMTG, the parent company of Truth Social, were decimated, falling as much as 15%. This severe and unprecedented market attack, with former U.S. President and Republican nominee Donald Trump owning 65% of the company, is a stark reminder of the potential economic risks we face. The TMTG drop followed news of Donald Trump’s guilty verdict in his criminal hush money trial. It was accelerated by the alleged illegal and concerning practice of naked short-selling, a practice that regulators have ignored regarding the former President’s company. A Manhattan jury convicted Trump of 34 counts of falsifying business records by a New York jury. Many see the result as a dangerous breakdown of the rule of law. The naked short-selling is even more ominous. It portends the demise of American Free Markets. Regulatory Inaction and Political Bias Trump Media & Technology Group Corp. CEO Devin Nunes sent a letter to NASDAQ CEO Adena T. Friedman about the “illegal ‘naked’ short selling of DJT stock.” The SEC and Nasdaq, entities controlled by the Biden administration, are under fire, accused of allowing this activity, spearheaded by a band of ‘Never Trumpers.’ Devin Nunes, CEO of Trump Media & Technology Group (TMTG), in a letter to Nasdaq CEO Adena Friedman, said he has urgently requested Congress to urge the Financial Industry Regulatory Authority (FINRA) to issue electronic blue sheets for TMTG’s trading data from April 29 through May 3 and some other dates in May and June. Nunes highlighted the “anomalies” around the trading of TMTG shares, citing data from the SEC. He requested data about financial firms (many having Never Trumpers at the helm), including Citadel Securities (Ken Griffin), G1 Execution Services (Susquehanna International Group LLP / Jeffrey Yass), Virtu AMERICAS / Doug Cifu, and Jane Street Capital (James McClave / Emily Berger). “These anomalies appear to be growing even more severe,” Nunes wrote. He asked Nasdaq to “fulsomely cooperate with any and all congressional or other investigations into these firms— including by promptly providing responsive data within Nasdaq’s possession.” Nunes had previously alerted NASDAQ’s Friedman to potential market manipulation in TMTG’s stock, asking the exchange to help prevent alleged manipulation. Naked short-selling, generally illegal in the United States, involves selling shares without first borrowing them or determining they can be borrowed, creating the risk the seller may not be able to deliver the shares. In late May, the company asked the State of Louisiana Office of Financial Institutions Commissioner to investigate alleged “illicit activities” in trading its shares. The Importance of Economic Freedom TMTG stock (NASDAQ: DJT) has faced unprecedented and coordinated “naked” short selling since the Trump Manhattan jury verdict on May 31. The United States is not in the 2024 Index of Economic Freedom Top Ten.
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