SEC subpoenas Wall Street banks over Situational Awareness

The Securities and Exchange Commission (SEC) has issued subpoenas to several Wall Street banks as part of an investigation into their role in the near collapse of Leopold Aschenbrenner’s AI-focused hedge fund last July. The fund managed to avoid total collapse only after striking a last-minute deal with Citadel, a major financial services firm. This move highlights the SEC’s growing scrutiny of the financial practices surrounding hedge funds and the broader implications for market stability and investor protection.