Tensions escalated between Citadel Securities and Trump Media & Technology Group (Nasdaq: DJT) on Friday after the latter’s CEO, Devin Nunes, accused major market participants of potential illegal short-selling of Trump Media’s shares.
In a scathing response, a Citadel Securities spokesperson did not mince words, calling Nunes “the proverbial loser who tries to blame ‘naked short selling’ for his falling stock price.” The firm underscored the sharp decline in Trump Media’s stock since its public debut last month.
“Nunes is exactly the type of person Donald Trump would have fired on The Apprentice. If he worked for Citadel Securities, we would fire him, as ability and integrity are at the center of everything we do,” the spokesperson added.
Trump Media fired back, accusing Citadel Securities of screwing over “everyday retail investors” and lacking integrity. The company later filed a statement with the SEC reiterating its stance against Citadel’s “unhinged attack” on Nunes.
The clash stems from Nunes’ letter to Nasdaq’s CEO on Thursday, alleging market manipulation through naked short selling of Trump Media’s shares. Nunes claimed four firms, including Citadel Securities, were responsible for over 60% of the “extraordinary” trading volume. Only Citadel responded to the letter.
While Trump Media has seen its share price rebound in recent days, it remains well below its opening level, wiping out billions in market capitalization for the fledgling company that owns Truth Social.
Interestingly, Citadel’s founder Ken Griffin donated $5 million to a political action committee supporting former South Carolina Gov. Nikki Haley, Trump’s rival to the GOP nomination. But he also donated $5,800 to Nunes’s congressional campaign in September 2021, just three months before Nunes resigned to head then privately-held Trump Media.
Information for this story was found via CNBC, and the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
