Trump fraud verdict could deal 'devastating' blow to Truth Social: NYT reporter
One byproduct of the massive fraud verdict leveled against former President Donald Trump last week could be a death blow to his Truth Social platform, according to New York Times investigative reporter Susanne Craig.
Appearing on MSNBC on Monday, Craig was asked about Trump potentially paying for the massive fines leveled against him by Judge Arthur Engoron by using equity from Truth Social.
Craig expressed skepticism that he would do so, and said she wasn't sold on Trump's stake in the company really being worth $4 billion.
"That is of course his social media company, and it has been losing money," she said. "It's kind of this fledgling company, but it was recently green-lighted by the Securities and Exchange Commission to merge with a public company that does have some money and his share in that, just based on the shares trading of that public company, are worth about $4 billion. It's a big number, but it's paper money right now... his shares are locked up until at least the fall."
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Added to this, argued Craig, the value of Truth Social shares would absolutely crumble were Trump forced to do a mass selloff given that his name is the company's biggest draw.
"If he does go ahead and sell, it would be pretty devastating to the company," she explained. "It would be a large percentage of the company that he would have to sell. But of course, the proceeds of that sale would be subject to taxation, whatever it is. So it's a hypothetical $4 billion."
Judge Arthur Engoron last week ordered Trump to pay more than $350 million for what he said was a widespread pattern of financial fraud at the Trump Organization. Trump has attacked the verdict and is vowing to appeal.
Trump prosecutor Letitia James praised the ruling as important for equal justice under the law, averring that "former presidents are no exception."
"The scale and scope of Donald Trump's fraud is staggering -- and so, too, is his ego and his belief that the rules don't apply to him," James said.
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