SEC Subpoenas Wall Street Banks Over Near-Implosion of Aschenbrenner's AI Hedge Fund

The SEC has subpoenaed Wall Street banks that financed and supervised trading for Situational Awareness, an AI-focused hedge fund led by former OpenAI researcher Leopold Aschenbrenner. A late-July 2026 AI-stock downturn erased billions at the fund. The fund has not been accused of wrongdoing and says it will cooperate fully. Reuters, the NYT, the FT, and Fortune reported the investigation on August 24.