Situational Awareness, star AI hedge fund that nearly imploded, now being probed by the SEC

Securities and Exchange Commission has issued subpoenas to Goldman Sachs, Citi and JPMorgan Chase over the near‑collapse of AI‑driven hedge fund Situational Awareness, putting the banks at risk of regulatory penalties while the fund grapples with a 67 % portfolio wipeout. The subpoenas arrived after the fund’s drastic loss raised alarms on Wall Street.

Barron’s reported that Goldman Sachs, Citi and JPMorgan are among the lenders facing the SEC’s inquiry, and CNBC and Bloomberg echoed the story, noting that the probes focus on the banks’ roles in the fund’s trading activities. Investing.com added that four banks were specifically targeted after the 67 % loss.

The subpoenas signal a deeper regulatory look, but the filings do not yet detail any violations, potential fines or specific remediation measures, and the SEC has not announced formal charges. Consequently, the full impact on the banks and on Situational Awareness remains uncertain, and any enforcement action or settlement discussion will depend on findings that have not been disclosed.