The AI Fund, which had been discounted by Citadel, was investigated by the SEC

On 25 August, the New York Times reported that the United States Securities and Exchange Commission was investigating the recent collapse of the AI hedge fund Situational Awareness and had issued summonses to the main Wall Street bank involved in the fund ' s transactions, which provided leverage. According to the sources, the SEC requested the bank to provide the time node of the Fund ' s transactions and the relevant information on its communication with lenders on the loaned funds and to keep all information related to the Fund. The Situational Awareness was founded by a former OpenAI researcher, Leopold Ashebrenna, who had a high return on the AI boom. At its peak, the Fund managed more than $30 billion in assets and borrowed tens of billions of dollars to scale up investments. However, at the end of last month, as popular AI stock prices fell and its traditional technology stock was emptyed, the losses of the Fund expanded rapidly and were eventually forced to “sold out” and sell most of its stock portfolio to Citadel at a discount. The Commission states that the investigation is still at an early stage and does not imply that penalties will be imposed. There have also been no allegations of irregularities. For its part, the Fund stated that it would “commit fully to any regulatory requirements”。