ChainThink reports that on August 25, according to Finviz, the U.S. SEC is investigating the discount liquidation event involving the AI hedge fund Situational Awareness and has issued subpoenas to major Wall Street banks involved in the trades, requesting transaction timestamps and communication records with lenders.
The fund was founded by Leopold Aschenbrenner, a former researcher at OpenAI, and at its peak managed over $30 billion in assets while borrowing hundreds of billions to leverage investments.
At the end of last month, due to declines in AI stocks and gains in traditional tech stocks, the fund's losses widened, forcing it to sell a large portion of its portfolio at a discount to Citadel. The SEC stated that the investigation is in its early stages and does not imply any inevitable penalties, nor has the fund been accused of any violations.
The fund stated that it will fully comply with regulatory requirements.