Social Media Company Pleads Guilty to Insider Trading

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Social Media,Insider Trading,Digital World Acquisition Corporation

A now-public social media company pleaded guilty to insider trading. Two individuals made millions by trading in shares of Digital World Acquisition Corporation before it merged with Trump Media. They face up to 20 years in prison.

A now-public social media company pleaded guilty Wednesday to insider trading. Michael Shvartsman and Gerald Shvartsman made millions by trading in shares of Digital World Acquisition Corporation before it merged with Trump Media, according to federal prosecutors in New York. Each of them faces up to 20 years in prison when they're sentenced in July, but prosecutors agreed to recommend a sentence of about three years.

'Michael and Gerald Shvartsman admitted in court that they received confidential, inside information about an upcoming merger between DWAC and Trump Media, and used that information to make profitable, but illegal, open-market trades,' said U.S. Attorney Damian Williams. 'Insider trading is cheating, plain and simple.

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