Wall St Engine(@wallstengine):SEC PROBES SITUATIONAL AWARENESS AFTER NEAR-COLLAPSE The SEC has subpoenaed major Wall Street banks for information on trades and leverage tied to AI-focused hedge fund Situational Awareness, per NYT. The fund, founded by former OpenAI researcher Leopold Aschenbrenner, managed more than $30B at its peak and borrowed tens of billions more. Regulators are seeking details on the timing of trades and communications with lenders after the fund suffered a sharp drawdown last month and was forced to sell most of its stock portfolio to Citadel at a discount. The investigation is still in its early stages, and the fund has not been accused of wrongdoing.

2026.08.24 20:16

SEC PROBES SITUATIONAL AWARENESS AFTER NEAR-COLLAPSE The SEC has subpoenaed major Wall Street banks for information on trades and leverage tied to AI-focused hedge fund Situational Awareness, per NYT. The fund, founded by former OpenAI researcher Leopold Aschenbrenner, managed more than $30B at its peak and borrowed tens of billions more. Regulators are seeking details on the timing of trades and communications with lenders after the fund suffered a sharp drawdown last month and was forced to sell most of its stock portfolio to Citadel at a discount. The investigation is still in its early stages, and the fund has not been accused of wrongdoing.