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Social media and telecom companies vague about their response to January 6 committee – CNN

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(CNN)A wide range of telecommunications and social media companies are still grappling with how to respond, if at all, to a request by the House Select Committee investigating the January 6 attack on the Capitol to preserve the records of several hundred people that could play a role in their investigation.

The uncertainty around how they will respond comes against the backdrop of what is expected to be a protracted legal battle once the committee begins the process of formally requesting records be turned over as part of their investigation. The likelihood of litigation increased when House Minority Leader Kevin McCarthy and several of his fellow Republican members cried foul over the committee’s request.
An official at one of the companies that received a request from the committee told CNN that McCarthy’s warning last week was interpreted as a “shot across the bow” for phone providers, in particular. Still, many of the companies have indicated they still intend to work with the committee but the responses were overwhelmingly vague as far as what that would entail.
In addition to the preservation of records requests, Thursday was also the deadline for 15 social media companies, many of which were also on the preservation of records request list, to turn over a range of records related to company policies dealing with extremism, misinformation and foreign influence. Thursday also marked the deadline for various government agencies to comply with the committee’s request.
A spokesperson for the select panel said in a statement Thursday night that “with several hours to go before today’s deadline, the Select Committee has received thousands of pages of documents in response to our first set of requests and our investigative team is actively engaged to keep that flow of information going.”
“These records supplement the material we’ve received from other House Committees related to their earlier probes of January 6th. The Select Committee is also aware that the National Archives has undertaken the process required by law for review of presidential records,” the statement continued.
A spokesperson from the National Archived told CNN it had received the request from the committee and “will respond to it in accordance with the Presidential Records Act.”
The preservation requests that were sent to 35 companies were not for these companies to turn over any of these records, but just to preserve them in the event the committee’s investigation leads them to ask for them to be handed over. In their letters to the companies, the committee went to great pains to point out that the request should not be interpreted as the subjects being the targets of the investigation or being accused of doing anything wrong.
“Inclusion of any individual name on the list should not be viewed as indicative of any wrongdoing by that person or others,” the letters reads. “The document identifies individuals who may have relevant information to aid the factfinding of the Select Committee.”
The committee had sent the request to the 35 companies asking them specifically to contact the panel if for some reason they were unable to comply with it.
The complex and extensive requests coupled with the unique nature of the committee’s work seems to have left many of these companies in a difficult position. CNN reached out to all 35 companies to see how they plan to respond. Most did not respond at all and the ones that did offered diplomatic responses that did not give much insight into how they plan to comply.
“We strongly condemn the violence that took place on Jan 6 at the U.S. Capitol,” said Clint Smith, Chief Legal Officer for Discord, in a statement. “We have been contacted by the House Select Committee and intend to cooperate fully as appropriate.”
While Smith makes it clear that Discord, an instant messaging and digital distribution platform, wants to cooperate with the investigation, the company could not describe at what level they plan to comply.
Discord was not alone. Much bigger tech giants like Facebook and Google chose not to go into detail about their work with the select committee.
“We have received the Select Committee’s letter and are committed to working with Congress on this. The events of January 6 were unprecedented and tragic, and Google and YouTube strongly condemn them,” said a spokesperson for the company. “We’re committed to protecting our platforms from abuse, including by rigorously enforcing our policies for content related to the events of January 6.”
Meanwhile, Facebook chose only to acknowledge they had received the committee’s request, but not how they planned to act. “We have received the request and look forward to continuing to work with the committee,” said a company spokesperson. The spokesperson referred CNN to the committee when asked what specifically the company turned over.
The same can be said for Zoho, an online office suite provider, which told CNN they had no comment beyond confirming they received the committee’s request.
While the companies that responded seemed reluctant to provide many specifics around their plans, few went out of their way to challenge the committee’s authority. Rocket.chat, an integrated messaging platform, told CNN they planned to do all they could to help the committee’s work.
“Rocket.Chat has always complied with such requests and has kept a close relationship with the authorities to communicate/share anything possible to help in these types of cases,” said Sana Javid, a spokesperson for Rocket.Chat.
But there were some companies that took a more defiant tone, in part because their businesses are located overseas and because the services they provide make it impossible for them to supply the committee with all they are requesting. Proton, a Switzerland-based encrypted e-mail provider told CNN they won’t comply unless forced to by the Swiss government.
“Our use of zero-access encryption means that we do not have access to the message content being requested,” said a company spokesperson. “Proton only complies with legally binding orders that are initiated or approved by Swiss authorities and therefore meet Swiss legal standards.”
The social network Gab, which is known as a platform widely used by the alt-right and white supremacists, publicly posted a point by point response to the committee’s request for information. They claimed they did not have much of the information the committee had requested. Furthermore Gab told the committee they respond only requests from law enforcement, when compelled by subpoena. They argued that the “Stored Communications Act” prevented them from providing what the committee was asking for.
The major phone providers, like AT&T, Verizon and T-Mobile, which some consider to be among the most consequential for lawmakers who were named as part of the request, overwhelmingly did not respond to CNN’s questions about their plans to comply with the committee.
Part of why the companies seem unwilling to publicly reveal how they plan to respond is likely because the issue is almost certainly headed to court.
“I think it’s very unlikely that any of the companies are just going to produce the documents without somebody going to court,” said Justin Antonipillai, an expert on data privacy and the former Acting Undersecretary for Economic Affairs at the Commerce Department during the Obama Administration.
Republicans have already gone out of their way to suggest the requests are inappropriate. House Minority Leader Kevin McCarthy, whose name CNN has reported is on the list of people the committee is interested in, suggested that companies that comply could be in violation of the law.
Antonipillai said that he expects most companies will preserve the records to be safe, but won’t turn those records over until the matter is settled in a court of law.
“You can already see that the congressional Republicans are laying the foundation to say that the congressional committee has no authority to issue the subpoenas, and then they will argue that it’s overboard and that the amount of data that’s being collected is unnecessary,” Antonipillai said. However, he said the courts have historically given the committees like these wide latitude to execute their subpoena power.
“I think it’s going to have broad leeway and if history holds true, courts are going to give this congressional committee a pretty wide berth to go in and pull in the records that they’re asking for,” he added.
The committee has accused McCarthy of attempting to intimidate the companies so they will slow-walk their compliance because of fears of legal repercussions.
“The Select Committee is investigating the violent attack on the Capitol and attempt to overturn the results of last year’s election. We’ve asked companies not to destroy records that may help answer questions for the American people,” committee spokesman Tim Mulvey said in a statement to CNN. “The committee’s efforts won’t be deterred by those who want to whitewash or cover up the events of January 6th, or obstruct our investigation.”
Despite McCarthy’s interference, Antonipillai said the chances of the minority leader being charged with obstruction of any kind is unlikely.
“I think it’s really unlikely that it would rise to the level of an obstruction of justice or obstruction of an investigation, just to send a letter like this,” he said referring to McCarthy’s statement about the committee’s request to preserve records. “I think if it escalated or they did something outside of the normal channel maybe, but I don’t see this rising to the level of that.”
This story has been updated with a statement from the House select committee.

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Trump could cash out his DJT stock within weeks. Here’s what happens if he sells

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August 23, 2024

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Former President Donald Trump is on the brink of a significant financial decision that could have far-reaching implications for both his personal wealth and the future of his fledgling social media company, Trump Media & Technology Group (TMTG). As the lockup period on his shares in TMTG, which owns Truth Social, nears its end, Trump could soon be free to sell his substantial stake in the company. However, the potential payday, which makes up a large portion of his net worth, comes with considerable risks for Trump and his supporters.

Trump’s stake in TMTG comprises nearly 59% of the company, amounting to 114,750,000 shares. As of now, this holding is valued at approximately $2.6 billion. These shares are currently under a lockup agreement, a common feature of initial public offerings (IPOs), designed to prevent company insiders from immediately selling their shares and potentially destabilizing the stock. The lockup, which began after TMTG’s merger with a special purpose acquisition company (SPAC), is set to expire on September 25, though it could end earlier if certain conditions are met.

Should Trump decide to sell his shares after the lockup expires, the market could respond in unpredictable ways. The sale of a substantial number of shares by a major stakeholder like Trump could flood the market, potentially driving down the stock price. Daniel Bradley, a finance professor at the University of South Florida, suggests that the market might react negatively to such a large sale, particularly if there aren’t enough buyers to absorb the supply. This could lead to a sharp decline in the stock’s value, impacting both Trump’s personal wealth and the company’s market standing.

Moreover, Trump’s involvement in Truth Social has been a key driver of investor interest. The platform, marketed as a free speech alternative to mainstream social media, has attracted a loyal user base largely due to Trump’s presence. If Trump were to sell his stake, it might signal a lack of confidence in the company, potentially shaking investor confidence and further depressing the stock price.

Trump’s decision is also influenced by his ongoing legal battles, which have already cost him over $100 million in legal fees. Selling his shares could provide a significant financial boost, helping him cover these mounting expenses. However, this move could also have political ramifications, especially as he continues his bid for the Republican nomination in the 2024 presidential race.

Trump Media’s success is closely tied to Trump’s political fortunes. The company’s stock has shown volatility in response to developments in the presidential race, with Trump’s chances of winning having a direct impact on the stock’s value. If Trump sells his stake, it could be interpreted as a lack of confidence in his own political future, potentially undermining both his campaign and the company’s prospects.

Truth Social, the flagship product of TMTG, has faced challenges in generating traffic and advertising revenue, especially compared to established social media giants like X (formerly Twitter) and Facebook. Despite this, the company’s valuation has remained high, fueled by investor speculation on Trump’s political future. If Trump remains in the race and manages to secure the presidency, the value of his shares could increase. Conversely, any missteps on the campaign trail could have the opposite effect, further destabilizing the stock.

As the lockup period comes to an end, Trump faces a critical decision that could shape the future of both his personal finances and Truth Social. Whether he chooses to hold onto his shares or cash out, the outcome will likely have significant consequences for the company, its investors, and Trump’s political aspirations.

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Arizona man accused of social media threats to Trump is arrested

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August 23, 2024

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Cochise County, AZ — Law enforcement officials in Arizona have apprehended Ronald Lee Syvrud, a 66-year-old resident of Cochise County, after a manhunt was launched following alleged death threats he made against former President Donald Trump. The threats reportedly surfaced in social media posts over the past two weeks, as Trump visited the US-Mexico border in Cochise County on Thursday.

Syvrud, who hails from Benson, Arizona, located about 50 miles southeast of Tucson, was captured by the Cochise County Sheriff’s Office on Thursday afternoon. The Sheriff’s Office confirmed his arrest, stating, “This subject has been taken into custody without incident.”

In addition to the alleged threats against Trump, Syvrud is wanted for multiple offences, including failure to register as a sex offender. He also faces several warrants in both Wisconsin and Arizona, including charges for driving under the influence and a felony hit-and-run.

The timing of the arrest coincided with Trump’s visit to Cochise County, where he toured the US-Mexico border. During his visit, Trump addressed the ongoing border issues and criticized his political rival, Democratic presidential nominee Kamala Harris, for what he described as lax immigration policies. When asked by reporters about the ongoing manhunt for Syvrud, Trump responded, “No, I have not heard that, but I am not that surprised and the reason is because I want to do things that are very bad for the bad guys.”

This incident marks the latest in a series of threats against political figures during the current election cycle. Just earlier this month, a 66-year-old Virginia man was arrested on suspicion of making death threats against Vice President Kamala Harris and other public officials.

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Trump Media & Technology Group Faces Declining Stock Amid Financial Struggles and Increased Competition

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August 20, 2024

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Trump Media & Technology Group’s stock has taken a significant hit, dropping more than 11% this week following a disappointing earnings report and the return of former U.S. President Donald Trump to the rival social media platform X, formerly known as Twitter. This decline is part of a broader downward trend for the parent company of Truth Social, with the stock plummeting nearly 43% since mid-July. Despite the sharp decline, some investors remain unfazed, expressing continued optimism for the company’s financial future or standing by their investment as a show of political support for Trump.

One such investor, Todd Schlanger, an interior designer from West Palm Beach, explained his commitment to the stock, stating, “I’m a Republican, so I supported him. When I found out about the stock, I got involved because I support the company and believe in free speech.” Schlanger, who owns around 1,000 shares, is a regular user of Truth Social and is excited about the company’s future, particularly its plans to expand its streaming services. He believes Truth Social has the potential to be as strong as Facebook or X, despite the stock’s recent struggles.

However, Truth Social’s stock performance is deeply tied to Trump’s political influence and the company’s ability to generate sustainable revenue, which has proven challenging. An earnings report released last Friday showed the company lost over $16 million in the three-month period ending in June. Revenue dropped by 30%, down to approximately $836,000 compared to $1.2 million during the same period last year.

In response to the earnings report, Truth Social CEO Devin Nunes emphasized the company’s strong cash position, highlighting $344 million in cash reserves and no debt. He also reiterated the company’s commitment to free speech, stating, “From the beginning, it was our intention to make Truth Social an impenetrable beachhead of free speech, and by taking extraordinary steps to minimize our reliance on Big Tech, that is exactly what we are doing.”

Despite these assurances, investors reacted negatively to the quarterly report, leading to a steep drop in stock price. The situation was further complicated by Trump’s return to X, where he posted for the first time in a year. Trump’s exclusivity agreement with Trump Media & Technology Group mandates that he posts personal content first on Truth Social. However, he is allowed to make politically related posts on other social media platforms, which he did earlier this week, potentially drawing users away from Truth Social.

For investors like Teri Lynn Roberson, who purchased shares near the company’s peak after it went public in March, the decline in stock value has been disheartening. However, Roberson remains unbothered by the poor performance, saying her investment was more about supporting Trump than making money. “I’m way at a loss, but I am OK with that. I am just watching it for fun,” Roberson said, adding that she sees Trump’s return to X as a positive move that could expand his reach beyond Truth Social’s “echo chamber.”

The stock’s performance holds significant financial implications for Trump himself, as he owns a 65% stake in Trump Media & Technology Group. According to Fortune, this stake represents a substantial portion of his net worth, which could be vulnerable if the company continues to struggle financially.

Analysts have described Truth Social as a “meme stock,” similar to companies like GameStop and AMC that saw their stock prices driven by ideological investments rather than business fundamentals. Tyler Richey, an analyst at Sevens Report Research, noted that the stock has ebbed and flowed based on sentiment toward Trump. He pointed out that the recent decline coincided with the rise of U.S. Vice President Kamala Harris as the Democratic presidential nominee, which may have dampened perceptions of Trump’s 2024 election prospects.

Jay Ritter, a finance professor at the University of Florida, offered a grim long-term outlook for Truth Social, suggesting that the stock would likely remain volatile, but with an overall downward trend. “What’s lacking for the true believer in the company story is, ‘OK, where is the business strategy that will be generating revenue?'” Ritter said, highlighting the company’s struggle to produce a sustainable business model.

Still, for some investors, like Michael Rogers, a masonry company owner in North Carolina, their support for Trump Media & Technology Group is unwavering. Rogers, who owns over 10,000 shares, said he invested in the company both as a show of support for Trump and because of his belief in the company’s financial future. Despite concerns about the company’s revenue challenges, Rogers expressed confidence in the business, stating, “I’m in it for the long haul.”

Not all investors are as confident. Mitchell Standley, who made a significant return on his investment earlier this year by capitalizing on the hype surrounding Trump Media’s planned merger with Digital World Acquisition Corporation, has since moved on. “It was basically just a pump and dump,” Standley told ABC News. “I knew that once they merged, all of his supporters were going to dump a bunch of money into it and buy it up.” Now, Standley is staying away from the company, citing the lack of business fundamentals as the reason for his exit.

Truth Social’s future remains uncertain as it continues to struggle with financial losses and faces stiff competition from established social media platforms. While its user base and investor sentiment are bolstered by Trump’s political following, the company’s long-term viability will depend on its ability to create a sustainable revenue stream and maintain relevance in a crowded digital landscape.

As the company seeks to stabilize, the question remains whether its appeal to Trump’s supporters can translate into financial success or whether it will remain a volatile stock driven more by ideology than business fundamentals.

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