Executives at Donald Trump's social media company, Truth Social, became concerned about $8m it had received from opaque entities in the form of emergency loans when auditors sought further details.
The loans had been arranged in a hurry, at a critical time for the company as it was running out of cash after its planned merger with a blank check company stalled.
The financing raised concerns because the executives knew little about the lenders.
A subsequent examination revealed that the trustee of ES Family Trust was simultaneously a director of Paxum Bank, and one of the part-owners of the bank would turn out to be the relation of an ally of Russian president, Vladimir Putin.
Federal prosecutors started to examine whether the company violated money-laundering statutes over the payments.
In the Spring of 2022, executives at Trump Media became concerned when auditors sought further details about two emergency loans totalling $8m from opaque entities.
The financing was received at a critical time for the company, as its planned merger had stalled.
The loans came from Paxum Bank, registered in Dominica, and ES Family Trust.
A subsequent examination revealed that the trustee of ES Family Trust was simultaneously a director of Paxum Bank, and one of the part-owners of the bank was related to an ally of Vladimir Putin.
Months after Trump Media came under criminal investigation over the merger, federal prosecutors started to examine whether the company violated money-laundering statutes over the payments.
The Guardian indicates that executives at the company had good reason to be concerned while also noting that the company received the loans to keep it afloat when the merger stalled.