The two companies flying to the stock exchange just before the entrance of the children of Trump: the new suspects of Insider Trading

The controversies for the video in which Donald Trump boasts of the billionaire earnings made by his friends, after the reverse on the « mutual duties », and a new chapter on the conflicts of interests of the President’s family, has not yet been turned off. The protagonists this time are the two children Eric and Donald Jr and two companies: Unusual Machines and Dominari Holdings.
The first produces drones, the second is a Fintech based in the Trump Tower in New York. Both have seen the volumes of exchange of their titles to Wall Street grow dizzying shortly before they revealed the choice to appoint Trump’s children in their respective advisory boards. Is it « Insider Trading »? The experts are wondered in these hours.

The entry of Donald Jr and Eric Trump in the Advisory Board

The actions of Unusual Machinesaccording to an analysis of the Financial Timesthey are almost tripled in the four weeks before the announcement of the entrance of Donald Trump Jr in the company’s Advisory Board. Announcement that dates back to November 27th. While those of DOMINARI Holdings 580% have increased in the six weeks preceding the announcement of the entry of Donald Jr and Eric Trump to the consultative committee. Decision that was revealed on February 11th.

A « suspicious » rise according to experts

The timing of the stockings of the stock exchange immediately appeared « suspect » in the eyes of the financial regulation experts. The medium daily volume of unusual machines, whose market value is around 90 million dollars, risen to 290,000 shares in the weeks before the new composition of the Advisory Board was announced compared to the only 93,000 between March and October 2024, highlights the Financial Times. Dominaries, which has a market value of about 60 million dollars, went from 11,700 shares exchanged between March and December 2024 to 1.2 million.

The portfolio of actions of the President’s children

Later it emerged that The two Trump brothers had been assigned 966,000 domains each, equal to 6.7% of the companybefore they were news of their new assignment. From a documentation filed in November by Unusual Machines it emerged that Donald Trump Jr. held 200,000 shares issued pursuant to an agreement that added to the 131,000 actions he purchased previously.

Unusual Machines: « No violation »

Answering the questions ofL Financial TimesUnusual Machines assured that only three high managers and the Board of Directors were aware of the new entry of Trump’s son in the board. And he said he did not have « reason to believe that none of these people have violated any duty, legal or trustee », and that the company « is not aware of the reason why investors have purchased its securities in this time interval ». Dominaries, on the other hand, preferred not to comment. As well as the spokespersons of Donald Jr and Eric Trump.

Is it « Insider Trading »?

Now the volume of the exchanges of the titles of the two companies has fallen compared to the weeks prior to the appointments of the children of Trump but, as the Financial Timescontinues to be higher than that of a year ago. On the suspicion of « Insider Trading », experts are cautious for now. Adam Pritchard, professor by right at the University of Michigan, told the Ft: «It does not follow that these are insider trading. As a consultant of the Board of Directors, Donald Trump Jr. does not necessarily have the obligation not to disseminate information, as usually does a member of the Board of Directors « .