Situational Awareness, an AI-focused hedge fund, is reportedly being probed by federal regulators. The company, led by Leopold Aschenbrenner, saw billions of dollars in value erased at the end of July due to a downturn in AI stocks.
The Securities and Exchange Commission (SEC) has reportedly subpoenaed banks that conducted business with the hedge fund. These subpoenas are said to focus on banks that supervised the fund's trading and provided funding.
The government reportedly advised these banks to "preserve any information" regarding Situational Awareness, though it noted that the fund has not been accused of any wrongdoing. Situational Awareness told The New York Times that scrutiny of high-profile funds is to be expected and that it would "cooperate to the fullest extent with any regulatory request."