The nature of the probe remains undisclosed, and the SEC has emphasized that the investigation does not necessarily imply any illegal activity by Rumble.
The confirmation came from Melinda Hardy, the SEC's assistant general counsel for litigation and administrative practice, in response to a public records request filed by Wired in November. Hardy stated, "We have confirmed with Division of Enforcement staff that the investigation from which you seek records is still active and ongoing."
She further explained that releasing the requested documents could potentially jeopardize the investigation by enabling individuals or entities under scrutiny to manipulate evidence or influence witness testimonies.
Rumble, in response to the investigation, has maintained its innocence. Rory Rumore, a spokesperson for the company, confirmed that Rumble had voluntarily submitted the requested documents to the SEC. The company urged the public to refrain from drawing premature conclusions about the situation.
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Chris Pavlovski, Rumble's CEO, took to X to express his views on the investigation. He alleged that the probe was initiated based on a fraudulent report submitted by a "short seller" intending to devalue Rumble's stock. Pavlovski wrote, "The playbook to try and destroy $RUM [Rumble]. A short seller creates a bogus report and sends it to the SEC. The SEC investigates the bogus report. Then the short seller talks to the media to get a story about how the SEC is investigating the report that started with him. The media happily writes the story." He further stated that despite these attempts, the company is prepared to face such challenges and is exploring its legal options.
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The investigation follows a report by investment research firm Culper Research, which questioned the accuracy of Rumble's reported monthly active users. The firm claimed that Rumble had inflated its user base by 66% to 108%, suggesting that the actual number of unique users was between 38 to 48 million. Culper Research disclosed that it had taken a short position in Rumble, meaning it would profit if Rumble's stock value decreased.
Rumble has vehemently denied these allegations. Rumore refuted the claims of inflated user numbers and cautioned investors to be wary of rumors spread by short sellers seeking to manipulate facts for their financial gain.
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