Chairman of the Securities and Exchange Commission Paul Atkins speaks during a panel on market-based finance during the 2026 Annual International Monetary Fund Spring Meetings in April. The SEC is now investigating Situational Awareness, an AI-focused hedge fund. File Photo by Bonnie Cash/UPI | License Photo
Aug. 25 (UPI) -- The Securities and Exchange Commission is investigating Situational Awareness, the Artificial Intelligence-focused hedge fund run by a 24-year-old.
The fund nearly collapsed last month when it dipped from about $45 billion to $10 billion in a late-July tech sell-off.
The SEC sent subpoenas to banks that provided loans for leveraged trading, The New York Times reported. The subpoenas wanted details on the timing of the trades and communications with lenders. They also told the banks to save any information about Situational Awareness.
The SEC investigates any fund that has large losses, and Situational Awareness has not been accused of any wrongdoing.
