Bloomberg just confirmed Citadel is one of the hedge funds under investigation by the Department of Justice.
Regulators are taking Morgan Stanely and several other hedge funds to court after several subpoenas were sent out earlier this year.
Bloomberg’s report confirms Citadel is one of the hedge funds on the list who the DOJ is seeking information from.
Keep reading to watch the Bloomberg clip below.
Welcome to Franknez.com – this clip came about on Twitter where a community member shared the Bloomberg news. Citadel is under investigation by the DOJ and the community is spreading this like wildfire.
Let’s dive right into it!
Bloomberg: Citadel under investigation by DOJ
Citadel has been one of the hedge funds/market makers who has been attacking AMC Entertainment stock.
Predatorial short selling strategies were exposed by the AMC and GME stock communities after the ‘meme stock’ frenzy fiasco early last year.
Both these stocks’ share prices have been suppressed by dark pool trading, naked short selling, spoofing, and through OTC trading.
The hedge fund is now being investigated after subpoenas were sent to numerous hedge funds and banks who might be connected.
Morgan Stanley and Goldman Sachs are two of the banks that are being ordered to court.
Among Citadel is a hedge fund by the name of Element according to the Bloomberg report.
Other Citadel news
Citadel received a $1.2 billion lifeline from partners Sequoia and Paradigm early this year, the first time the company receives private funding.
The hedge fund is estimated to have lost several billions of dollars last year shorting AMC and GameStop.
Deputy Global Treasurer Michael Kurlander also resigned last year after 4 years with Citadel.
He left in June of 2021, right when ‘meme stocks’ were at their peak.
The hedge fund announced late last year to its customers they would be imposed heavy fees if they withdrew their investments.
The company also said getting back in would be nearly impossible.
After a year of shorting so called ‘meme stocks’, the community discovered Ken Griffin owns company shares of News Corp., a corporation that owns Wall Street Journal, Market Watch, and a number of other platforms that have been attacking AMC and GameStop.
These mainstream platforms have lost a lot of trust from retail investors due to major conflict of interest.
Other recent probes by the Justice Department
Muddy Waters was recently probed for flooding the market with fake orders.
Many retail investors doubted the SEC or DOJ would take action, but it seems actions spoke louder than words this time.
Still, only time will tell where these investigations go.
What do you want to see come out of this investigation?
Leave a comment below with your thoughts on the matter.
This is a developing story.
Join the newsletter to get notified on new updates.