Facing hundreds of millions of dollars in damages in two separate cases, the former president appears poised to leverage the IPO of his social media platform, Truth Social, as a strategic maneuver to evade bankruptcy.
Letitia James, a prosecutor in New York, tweeted that the daily interest accruing to the $354 million (€327 million) in damages that a New York court ordered Donald Trump to pay on February 16 for artificially inflating the value of his empire’s assets. This practice allowed the Trump Organization to raise additional capital and pay less interest to its lenders. Trump’s supporters argue that the absence of a jury and a victim, Deutsche Bank, and the Eighth Amendment to the US Constitution, which states that excessive bail shall not be required nor excessive fines imposed, will not be allowed.
Some even believe that the sentence will be reversed or reduced on appeal. The Trump family is upset, as this comes in addition to the $83.3 million Trump must pay former Elle magazine journalist E. Jean Carroll for defamation. Trump appealed the convictions in the Trump Organization trial but remains in serious financial trouble. To avoid paying the sums demanded pending a second judgment, he must post bail or present a guarantee for an equivalent amount within thirty days of the conviction. Justice Arthur Engoron has already refused to extend the $354 million deadline.