The U.S. Securities and Exchange Commission is investigating a near-implosion tied to the AI-focused hedge fund Situational Awareness, according to reports from The New York Times and CNBC. The SEC has reached out to major Wall Street banks with subpoenas seeking information related to the fund.
Both outlets say the subpoenas are aimed at understanding trading activity and financing arrangements connected to Situational Awareness. The Times reports that the SEC sends subpoenas to major banks and seeks details about how the fund’s trades were handled, while CNBC similarly reports that the SEC is seeking information from banks about trades and financing tied to the hedge fund.
The reports do not provide additional specifics on the underlying causes of the fund’s near collapse, which banks received subpoenas, or what the SEC has found so far. The extent of the probe and whether it may lead to enforcement action remain unclear based on the information in the articles.
