The U.S. Securities and Exchange Commission has sent subpoenas to major Wall Street banks regarding hedge fund Situational Awareness, according to people familiar with the matter.
The information sought is related to the trading activities of the hedge fund, which came under pressure and was forced to exit many of its positions last month, said the people, who spoke on condition of anonymity and discussed a confidential matter. The New York Times previously reported on the SEC’s subpoenas.
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An SEC spokesman declined to comment. An SEC investigation does not mean that a company or individual is the focus of an investigation, and an investigation by the regulator may end without enforcement action.
The fund began liquidating some of its stock positions as it faced a flood of margin calls during last month’s AI stock decline. Ken Griffin’s Citadel stepped in and bought most of his public stock bets.
“It is expected that regulators will closely scrutinize any funds that have high profiles, generate significant returns or have particularly dramatic losses,” Situational Awareness said in a statement on Monday. “We are a highly regulated company and will cooperate fully with any regulatory requests.”