SEC Probes Collapse of Leopold Aschenbrenner's Hedge Fund Situational Awareness

The US Securities and Exchange Commission (SEC) has issued subpoenas to four major banks - Goldman Sachs, Bank of America, JPMorgan Chase, and Citibank - as part of an investigation into the collapse of hedge fund Situational Awareness.

Founded by 25-year-old AI researcher Leopold Aschenbrenner, the fund's portfolio plummeted 67% in July due to aggressive leverage, causing assets to drop from $45 billion to around $10 billion.

The SEC is probing two key aspects of the fund's collapse: when margin calls were triggered and how the fund discussed leverage positions with lending banks.