In a recent address at the Semafor World Economy Summit on April 23, 2025, Citadel founder Ken Griffin voiced sharp criticism of President Donald Trump’s escalating trade war, labeling it as having “devolved into a nonsensical place.”
Griffin’s remarks, reported by Bloomberg, underscored the disruption caused by Trump’s aggressive tariff policies, which have thrown corporate planning into disarray.
CEOs, Griffin noted, had anticipated a regulatory reprieve under Trump’s administration, hoping to focus on growth over the next four years.
Instead, the trade war’s unpredictability has forced businesses to grapple with new economic uncertainties, from supply chain disruptions to rising costs.
However, while Griffin positions himself as a voice of reason amid economic chaos, his own empire—Citadel LLC (hedge fund), Citadel Securities (market maker), and Citadel Connect (a non-registered dark pool)—faces intense scrutiny from retail investors and commentators on platforms like X and Trump’s Truth Social.
These groups accuse Griffin and Citadel of market manipulation and conflicts of interest, with calls for investigations into practices like naked short selling intensifying.
This article explores Griffin’s critique of Trump’s trade policies, the broader economic context, and the growing backlash against Citadel, including demands for oversight from the Department of Government Efficiency (DOGE) and allegations of market misconduct.
Ken Griffin’s Critique of Trump’s Trade War
Griffin’s comments at the Semafor summit reflect a broader unease among business leaders about Trump’s trade strategy.
Since taking office, Trump has imposed steep tariffs on imports, targeting countries like China, Japan, and even allies in the European Union.
These levies, often justified as a means to bolster domestic manufacturing, have sparked retaliatory tariffs and strained global trade relations.
A CBS News poll cited by Bloomberg found that most Americans expect Trump’s tariffs to raise prices and harm the U.S. economy in the short term, even if some support the goal of boosting local production.
Griffin, whose Citadel manages billions in assets, argued that the trade war’s erratic nature has upended corporate expectations.
“Chief executive officers had been looking forward to a long stint of not having to navigate new regulations,” he said, highlighting the contrast between anticipated stability and the current reality of trade-driven volatility.
The International Monetary Fund’s recent downgrade of U.S. growth forecasts for 2025 and 2026, despite the U.S. remaining the fastest-growing G7 economy, further underscores the economic headwinds exacerbated by trade tensions.
Trump’s rhetoric has added to the uncertainty.
While he has floated the possibility of cutting China tariffs “substantially” in a potential trade deal, his administration has also considered tariffs on electronics and chips, reversing earlier exemptions.
This policy whiplash has left markets on edge, with stocks rising on signs of de-escalation (e.g., Trump’s denial of plans to fire Federal Reserve Chair Jerome Powell) but faltering when tensions flare.
For Griffin, the unpredictability is a direct threat to the growth-oriented strategies that firms like Citadel rely on.
Retail Investors’ Revolt Against Citadel
While Griffin critiques Trump’s economic policies, retail investors—emboldened by platforms like X and Truth Social—are turning the spotlight on Citadel itself.
For years, these investors, often associated with meme stock movements like GameStop ($GME) and AMC Entertainment ($AMC), have urged regulators, including the Securities and Exchange Commission (SEC), to investigate Citadel for alleged market manipulation.
Their grievances center on Citadel’s multifaceted operations: its hedge fund, which bets on market movements; Citadel Securities, a dominant market maker that executes trades; and Citadel Connect, a non-registered dark pool that facilitates off-exchange trading.
Critics argue that this structure creates inherent conflicts of interest.
Posts on X have been particularly vocal.
One user, @jpollitto, wrote on April 14, 2025, “Citadel LLC (Hedge Fund), Citadel Securities (Market Maker), Citadel Connect (NON-REGISTERED Dark Pool).
All 3 are owned by Ken Griffin?
Let me get this straight, the company shorting the stock also directs the order and fills it. Definition of conflict of interest.”
Naked short selling, in particular, has become a flashpoint.
Retail investors have long suspected Citadel of engaging in this practice, which can artificially depress stock prices by flooding the market with unborrowed shares.
The SEC has faced pressure to address naked short selling, with recent regulatory changes aimed at increasing transparency in short selling practices.
However, critics argue that enforcement remains inadequate, and Citadel’s outsized role in the market—Citadel Securities handles a significant portion of U.S. retail trading volume—gives it disproportionate influence.
DOGE and Truth Social Amplify the Fight
The Department of Government Efficiency (DOGE), a new initiative under Trump’s administration led by figures like Elon Musk, has also been drawn into the fray.
Retail investors on X have urged DOGE to investigate Citadel, with posts calling for Griffin’s prosecution over alleged naked short selling.
While DOGE’s mandate focuses on streamlining government operations, its high-profile leadership and populist appeal have made it a lightning rod for retail investor demands, particularly those targeting Wall Street giants like Citadel.
Trump’s Truth Social platform has further amplified these concerns, with posts criticizing not only market manipulation of Trump Media & Technology Group ($DJT) but also Griffin specifically for naked short selling.
The platform’s users, aligned with Trump’s anti-establishment rhetoric, view Citadel as emblematic of a rigged financial system that disadvantages retail traders.
This narrative gained traction after Trump’s own posts on Truth Social denied tariff exemptions for electronics, signaling his willingness to challenge corporate interests—a stance that resonates with retail investors’ distrust of Wall Street.
In 2024, Truth Social, Trump’s social media site publicly scrutinized Ken Griffin’s Citadel Securities for naked short selling the market.
“Rather than support our common sense efforts to promote transparency and compliance, Citadel Securities bizarrely targeted our CEO with an unhinged attack. Here’s our response:
“Citadel Securities, a corporate behemoth that has been fined and censured for an incredibly wide range of offenses including issues related to naked short selling, and is world famous for screwing over everyday retail investors at the behest of other corporations, is the last company on earth that should lecture anyone on ‘integrity.’”
Related: Trump Media Now Signals Illegal Activity in DJT Stock
The Broader Context: Market Manipulation and Regulatory Challenges
The allegations against Citadel are part of a larger debate about market fairness.
Retail investors, galvanized by the 2021 GameStop saga, have become a potent force, using social media to organize and demand accountability.
Their focus on Citadel stems from its dual role as a hedge fund and market maker, which critics argue allows it to manipulate prices through strategic trading and order flow control.
The SEC has taken steps to address some of these concerns.
Recent rules, as noted by Frank Nez, aim to curb naked short selling by requiring brokers to verify share availability before executing short sales.
Many rules have unfortunately been delayed.
However, retail investors remain skeptical, pointing to Citadel’s continued dominance and Griffin’s wealth—estimated at over $40 billion—as evidence of systemic flaws.
The fact that Citadel Securities processes a significant share of retail trades, including those from brokers like Robinhood, only deepens suspicions that the firm can prioritize its own interests over those of individual investors.
Also Read: A Congresswoman Now Introduces Bill To End FINRA
Griffin’s Defense and the Road Ahead
Griffin has of course denied allegations of market manipulation, and Citadel has defended its practices as compliant with regulations.
The firm argues that its market-making arm operates independently from its hedge fund, with firewalls to prevent conflicts of interest.
Citadel Securities’ role in providing liquidity to markets, they claim, benefits investors by ensuring efficient trading.
Yet, the opacity of dark pools like Citadel Connect and the complexity of high-frequency trading continue to raise questions about transparency.
As Trump’s trade war reshapes the economic landscape, the pressure on Citadel is unlikely to abate.
Retail investors, empowered by social media and emboldened by populist movements, are demanding not just regulatory reform but accountability from figures like Griffin.
Whether DOGE or the SEC will act on these calls remains uncertain, but the convergence of trade policy chaos and market distrust has created a volatile environment for Wall Street titans.
Also Read: Citadel’s motion to dismiss has now been denied in NWBO case
Why this matters
Ken Griffin’s critique of Trump’s trade war highlights the economic fallout of tariff-driven uncertainty, but it also casts an ironic spotlight on his own vulnerabilities.
While Griffin decries “nonsensical” policies, retail investors and Truth Social users are calling out what they see as Citadel’s own nonsensical practices—namely, alleged market manipulation through naked short selling and conflicts of interest.
With DOGE emerging as a potential ally for retail investors and regulatory scrutiny of short selling intensifying, Citadel faces a reckoning.
As markets navigate the twin storms of trade wars and populist outrage, the battle between Wall Street giants and retail traders is poised to escalate, with Griffin and Citadel at its epicenter.
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Also Read: Investors now urge President Trump to investigate naked short selling in formal letter
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