SEC reportedly subpoenas Wall Street banks over AI hedge fund Situational Awareness's near collapse
The SEC has reportedly subpoenaed Goldman Sachs, JP Morgan, Citigroup, and Bank of America regarding their ties to AI hedge fund Situational Awareness, which saw assets drop from $45B to $10B in July. The fund, led by ex-OpenAI researcher Leopold Aschenbrenner, faced margin calls and sold positions to Citadel at a discount. SK Hynix and CoreWeave were among the affected holdings. The SEC seeks details on trades, leverage, and communications, but no wrongdoing has been alleged.
