SEC subpoenas banks over AI hedge fund that nearly blew up
The SEC has subpoenaed Wall Street banks to probe the trading of Situational Awareness, the OpenAI-alum-led AI hedge fund that erased billions in July's AI sell-off. The regulator wants details on the leveraged bets and lender financing that drove the near-collapse, and told banks to preserve records. No wrongdoing has been alleged, but the fallout could reshape how confidently funds lever up on concentrated AI bets.