The former US president stands to gain billions of dollars - his stake is currently valued at about $4bn (£3.2bn) - from the merger between Trump Media and Technology Group and the blank-check company Digital World Acquisition Corporation, which took the parent company of Truth Social public.
But Trump Media almost did not make it to the merger after regulators opened a securities investigation into the merger in 2021 and caused the company to burn through cash at an extraordinary rate as it waited to get the green light for its stock market debut.
That led Trump Media to take emergency loans, including from an entity called ES Family Trust, which opened an account with Paxum Bank, a small bank registered on the Caribbean island of Dominica that is best known for providing financial services to the porn industry.
Through leaked documents, the Guardian has learned that ES Family Trust operated like a shell company for a Russian-American businessman named Anton Postolnikov, who co-owns Paxum Bank and has been a subject of a years-long joint federal criminal investigation by the FBI and the Department of Homeland Security (DHS) into the Trump Media merger.
The existence of the trust was first reported by the Guardian last year. However, who controlled the account, how the trust was connected to Paxum Bank, and how the money had been funnelled through the trust to Trump Media was unknown.
The new details about the trust are drawn from documents including Paxum Bank records showing Postolnikov having access to the trust's account; the papers that created the trust showing as its settlor a lawyer in St Petersburg, Russia; and three years of the trust's financial transactions.
The concern surrounding the loans to Trump Media is that ES Family Trust may have been used to complete a transaction that Paxum itself could not.
This story is from the April 04, 2024 edition of The Guardian.
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This story is from the April 04, 2024 edition of The Guardian.
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