In a bold escalation of its ongoing battle against perceived market manipulation, Trump Media & Technology Group (TMTG), the parent company of Truth Social, has accused Democratic Senator Elizabeth Warren of shielding hedge funds and enabling illegal naked short selling practices.
This accusation comes amid heightened scrutiny of TMTG’s stock (ticker: DJT) and its recent ventures into financial products, including exchange-traded funds (ETFs) and cryptocurrency-based investments.
TMTG’s outspoken criticism marks a new peak in its vocal campaign against naked short selling, a practice it claims is artificially depressing its stock price and harming retail investors.
As retail investors grow increasingly frustrated with regulators’ perceived favoritism toward Wall Street, TMTG’s aggressive stance is resonating with a broader movement demanding accountability in financial markets.
Senator Warren’s Letter Sparks Controversy
On April 25, 2025, Senator Elizabeth Warren, a prominent figure in financial regulation and the ranking member of the U.S. Senate’s banking committee, sent a letter to Securities and Exchange Commission (SEC) Chairman Paul Atkins.
In it, she raised concerns about potential conflicts of interest surrounding TMTG’s planned financial products, particularly ETFs to be launched by a company majority-owned by President Donald Trump.
Warren argued that the SEC’s oversight of these products, which require regulatory approval, could be compromised due to Trump’s influence over the agency.
She emphasized that “all SEC decisions and actions involving [TMTG] and President Trump’s financial interests should be carefully managed to ensure that they are free from undue political interference and influence from the President and his administration.”
Warren’s letter specifically highlighted TMTG’s April 22 announcement of a binding agreement with Crypto.com and Yorkville America Digital to roll out retail investment products, including cryptocurrency-based offerings.
She described this move as an “extraordinary conflict of interest,” noting that a sitting president was seeking approval from an agency under his administration for investments he controls.
Warren requested that the SEC preserve all communications related to TMTG’s deal with the cryptocurrency firm hosting the ETF and other investment products.
Trump Media’s Fiery Response
TMTG swiftly rebuked Warren’s accusations, framing her letter as an attack on “America-First companies” and an attempt to protect hedge funds engaged in market manipulation.
In a statement emailed to Reuters, TMTG asserted, “Rather than acting to stop actual corruption on the stock market and the rampant, illegal naked short selling of stocks, Senator Warren protects hedge fund bosses and her rich donors while harassing and intimidating America-First companies.”
This response underscores TMTG’s growing willingness to confront not only financial institutions but also high-profile political figures it perceives as complicit in market misconduct.
TMTG’s accusation that Warren is shielding hedge funds aligns with its broader narrative that powerful elites are working to undermine its stock and, by extension, its mission to promote free expression through platforms like Truth Social.
The company has repeatedly claimed that its stock is under attack by short sellers, particularly through the illegal practice of naked short selling, which involves selling shares without first borrowing them or ensuring they can be borrowed.
This practice, banned in the U.S. due to its potential to artificially depress stock prices and destabilize markets, has been a focal point of TMTG’s grievances, like others such as AMC, GameStop, NWBO, and MMTLP investors.
A Vocal Crusade Against Naked Short Selling
TMTG’s recent statements represent its most vocal and aggressive stance to date on naked short selling.
On April 17, 2025, the company sent a memo to SEC Acting Chairman Mark Uyeda, alleging “suspicious trading activity” surrounding a $105 million short position disclosed by UK-based hedge fund Qube Research & Technologies.
TMTG suggested that Qube’s actions could involve naked short selling, pointing to irregularities such as the fund’s decision to report trades solely in Germany despite being based in the UK with a data center in Iceland.
The company argued that this could indicate regulatory arbitrage, a tactic to exploit differences in international regulations.
This was not TMTG’s first call for regulatory action.
In April 2024, CEO Devin Nunes wrote to Nasdaq, alleging that four firms, including Citadel Securities, were responsible for 60% of DJT’s trading volume and potentially engaging in naked short selling.
These claims have fueled a narrative among Trump’s base and retail investors that TMTG’s stock is unfairly targeted by Wall Street giants.
Trump himself amplified this message in April 2025, posting on Truth Social:
“There are fake, untrue, and probably illegal rumors and/or statements made by, perhaps, market manipulators or short sellers, that I am interested in selling shares of Truth.”
TMTG’s memo to the SEC also referenced DJT’s prolonged appearance on Nasdaq’s Regulation SHO Threshold Security List in 2024, which flags stocks with significant failures to deliver shares—often a sign of potential naked short selling.
The company urged the SEC to investigate Qube’s trading and report findings to relevant authorities, signaling its intent to hold regulators accountable for addressing market manipulation.
Also Read: Trump Is Now Taking on Illegal Short Selling After Threat
Retail Investors’ Frustration with Regulators
TMTG’s accusations against Warren and its crusade against naked short selling have struck a chord with retail investors, who are increasingly concerned with regulators’ bias toward hedge funds and institutional investors.
The retail investor community, stricken by events like the 2021 GameStop and AMC short squeezes, views naked short selling as a tool used by Wall Street to suppress stock prices and harm Main Street investors.
Social media platforms, including X, have amplified this sentiment, with posts highlighting allegations of naked short selling impacting over 50 companies, including TMTG.
Retail investors are particularly frustrated by what they see as the SEC’s inaction on naked short selling.
Despite the practice being illegal, enforcement has been inconsistent, and allegations of market manipulation often go unaddressed.
TMTG’s call for an SEC investigation into Qube’s trading has rallied investors holding stocks like AMC, GameStop, and those affected by the MMTLP fraud, who hope Trump’s administration will crack down on Wall Street misconduct.
As one article noted, “As Trump’s administration prepares to tackle financial misconduct, retail investors… are rallying behind the move, hoping for a crackdown on Wall Street giants like Citadel and greater accountability for bad actors in the financial markets.”
This frustration is compounded by broader concerns about regulatory capture, where agencies like the SEC are perceived to prioritize the interests of powerful financial institutions over those of retail investors.
Senator Warren, often seen as a champion of consumer protection, has faced criticism from retail investors for focusing on TMTG’s conflicts of interest while seemingly ignoring allegations of naked short selling.
TMTG’s accusation that Warren is protecting “hedge fund bosses and her rich donors” taps into this sentiment, portraying her as part of an establishment that shields Wall Street at the expense of Main Street.
TMTG’s Broader Financial Ambitions
TMTG’s vocal campaign against naked short selling coincides with its efforts to diversify beyond Truth Social.
The company’s announcement of investment products, including ETFs themed around “Made in America” and “Energy Independence,” aligns with the Trump administration’s agenda and aims to attract retail investors.
However, these ventures have drawn scrutiny, as evidenced by Warren’s letter, due to the potential for conflicts of interest given Trump’s dual role as president and majority owner of TMTG.
Despite these challenges, TMTG remains defiant, positioning itself as a champion of retail investors and a victim of market manipulation.
The company’s stock has faced significant volatility, plummeting 23% year-to-date.
TMTG attributes much of this decline to short selling, particularly the illegal naked variety, and has used its platform to rally support among investors who share its distrust of Wall Street and regulators.
Bookmark: A Congresswoman Now Introduces Bill To End FINRA
The Road Ahead
TMTG’s accusations against Senator Warren and its aggressive push against naked short selling mark a pivotal moment in its ongoing saga.
By framing Warren as a defender of hedge funds, TMTG is not only defending its own interests but also tapping into a broader populist movement against financial elites.
The company’s repeated calls for SEC investigations, coupled with Trump’s personal endorsements on Truth Social, have elevated the issue of naked short selling to a national conversation, resonating with retail investors who feel ignored by regulators.
However, the SEC’s response remains uncertain.
The agency has not commented on TMTG’s requests for investigations, and its ability to act may be complicated by political pressures and the complexities of proving naked short selling.
Meanwhile, retail investors continue to demand greater transparency and accountability, viewing TMTG’s fight as part of a larger battle against systemic inequities in the financial system.
As TMTG navigates its financial ventures and market challenges, its vocal stance on naked short selling has cemented its role as a lightning rod for debates about market fairness, regulatory oversight, and the influence of powerful elites.
Whether this campaign will lead to tangible reforms or further polarize the financial landscape remains to be seen, but one thing is clear: TMTG is louder and more determined than ever to confront those it believes are undermining its mission and the interests of Main Street investors.
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Also Read: Investors now urge President Trump to investigate naked short selling in formal letter
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