The SEC has issued subpoenas to banks that worked with Situational Awareness, the AI hedge fund led by Leopold Aschenbrenner that surged and then nearly collapsed in July. Regulators are seeking documents tied to the fund’s trading and funding channels, though no allegations of wrongdoing have been made.
The probe follows a sharp decline in AI stock valuations that erased billions from the fund’s portfolio. Situational Awareness, once a Wall Street darling, has not commented publicly beyond stating it will fully cooperate with regulatory requests.
The scrutiny underscores growing caution around AI-driven investment strategies after rapid growth and sudden reversals.
