SEC Subpoenas Goldman, JPMorgan, Citi and BofA Over the Near-Collapse of AI Hedge Fund Situational Awareness

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The SEC has sent subpoenas to Situational Awareness's four largest prime lenders seeking trade timing, borrowing records, and communications around the margin calls that forced the fund to dump most of its equity book to Citadel at a discount. The fund, founded by former OpenAI researcher Leopold Aschenbrenner, ran more than $30 billion with reported leverage up to 400% and borrowed tens of billions more. No party has been accused of wrongdoing, but this is the first regulator inquiry into the leverage structure behind the AI trade itself rather than into an AI company.