Trump Media IPO Saved By Adult Entertainment Financier

According to the Guardian:
Trump Media, the social media venture started by former US President Donald Trump, faced a rocky road to going public last week. Back in 2022, the company was on the brink of collapse, saved only by emergency loans. These loans came from various sources, including a businessman with ties to Russia and America who is currently under investigation for insider trading and money laundering by federal authorities. It seems rather at odds to use an adult financier while also selling bibles.

Source: TruthSocial

Trump, who still holds a significant stake in the company valued at around $4 billion, was banking on a merger with Digital World Acquisition Corporation to take his social media venture, Truth Social, public. However, before this merger could happen, regulatory scrutiny and delays drained Trump Media’s funds, pushing it into a desperate situation.

Source: Yahoo Finance

To stay afloat, Trump Media had to borrow money quickly, even turning to an entity called ES Family Trust for help. This trust, linked to a Russian-American businessman named Anton Postolnikov, used an account at Paxum Bank, a bank based in Dominica known for serving the adult entertainment industry.

Source: WorldMatrix

Leaked documents reveal that Postolnikov had control over the trust’s account, raising questions about the source of the funds and their connection to Trump Media. While the existence of the trust had been previously reported, the details of its operations and ties to Paxum Bank were not fully understood until now.

Records from Paxum Bank show Postolnikov’s involvement with the trust, while documents establishing the trust point to a lawyer in St. Petersburg, Russia, as its creator. Concerns have been raised about whether the loans from ES Family Trust were used to facilitate transactions that Paxum Bank couldn’t directly handle. Paxum Bank has a physical address of: Paxum Bank Limited Centre Cross Lane
Roseau Commonwealth of Dominica.

This revelation adds to the ongoing investigation into Trump Media’s financial dealings and raises further questions about the company’s ties to individuals under federal scrutiny.

Truth Social’s revenue was $4.13 million last year, up from $1.47 million in 2022, it said. By comparison, Reddit brought in revenue of $800 million in 2023.

Florida venture capitalist Michael Shvartsman and his brother Gerald Shvartsman pleaded guilty on Wednesday to participating in an insider trading scheme linked to the blockbuster deal that brought former President Donald Trump’s social media business public.

Each of the brothers pleaded guilty in New York to one count of securities fraud, which carries a maximum sentence of 20 years in prison, according to federal prosecutors.