Citadel’s Ken Griffin is now taking shots at Trump despite Trump Media’s naked short selling allegations against the hedge fund billionaire.

Billionaire hedge fund manager Ken Griffin, founder of Citadel, has intensified his criticism of President Donald Trump’s economic policies, taking aim at the administration’s tax bill and tariff strategy while facing mounting pressure from retail investors demanding investigations into alleged market manipulation.

Speaking at the 2025 Forbes Iconoclast Summit, Griffin, a prominent Republican donor who supported Trump in the 2024 election, labeled the GOP’s “One Big Beautiful Bill” as a fiscal misstep that could balloon the federal deficit by trillions, slamming Trump’s tariffs as a “huge policy mistake” that hurts American consumers and erodes the nation’s global economic standing.

However, Griffin’s outspoken critique comes amid a brewing controversy involving Trump Media & Technology Group, which has accused Citadel of engaging in “naked short selling” to manipulate the stock price of $DJT, Trump’s media venture.

Retail investors, galvanized on platforms like X, are amplifying these allegations, urging regulatory bodies like the SEC to probe Citadel and other hedge funds for practices they claim harm everyday investors.

In 2024, Truth Social released the following statement:

“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.’”

Griffin’s Broadside Against Trump’s Economic Agenda

At the Forbes summit, Griffin didn’t hold back, criticizing the Trump administration’s signature tax and spending bill, which narrowly passed the House and is under Senate review.

He warned that the legislation, which includes tax cuts for small businesses, seniors, and specific income types like tips and overtime, “will unquestionably add several trillion dollars” to the federal deficit.

Griffin argued that the bill lacks the “tough decisions” needed to address the nation’s fiscal challenges, particularly with deficits running at 6-7% of GDP during full employment.

Griffin also took issue with Trump’s tariff policies, calling them a “sales tax” on hardworking Americans and a barrier to economic growth.

He expressed frustration over the administration’s attacks on corporate leaders, such as Walmart CEO Doug McMillon, who warned of price hikes due to tariff-driven import costs.

“We should not criticize CEOs for being honest,” Griffin said, adding, “Shame on the administration.”

His remarks echo earlier criticisms, including at the Milken Institute’s Global Conference, where he warned that tariffs risk ushering in “crony capitalism” by favoring certain industries over others.

Griffin’s firm, Citadel, has cut its 2025 economic growth estimates in half since Trump took office, citing the tariffs’ toll on the U.S. economy.

He also expressed skepticism about Trump’s goal of reviving American manufacturing, arguing that policy volatility undermines investor confidence and makes it unlikely for new factories to be built.

“Why are we aspiring to be the nation of the lowest cost and lowest paid workforce in the world?” Griffin said, questioning the logic of onshoring low-cost goods production.

Trump Media’s Allegations and Retail Investor Uproar

While Griffin positions himself as a critic of Trump’s policies, he faces accusations from Trump Media & Technology Group, the parent company of Truth Social, which alleges that Citadel is involved in illegal “naked short selling” to suppress $DJT’s stock price.

Naked short selling involves selling shares without first borrowing them, a practice that can artificially depress stock prices and is heavily scrutinized by regulators.

Posts on X from retail investors and market commentators, including @xMarketNews, highlight claims that Citadel’s actions are part of broader market manipulation, with some pointing to the nomination of Kash Patel—a Trump Media board member—as FBI director as a potential catalyst for investigations.

Retail investors have taken to X to voice their frustration, with many calling for the SEC and other authorities to investigate Citadel and similar firms.

“Ken Griffin and Citadel have been screwing over retail investors for years,” one user posted, echoing a sentiment shared across online forums.

Another wrote, “With Kash Patel in the mix, maybe we’ll finally see some accountability for naked shorting in $DJT.”

These posts reflect a growing distrust among retail investors, who see Griffin’s public criticisms of Trump as hypocritical given the allegations against his firm.

Trump Media’s CEO has directly addressed the issue, stating, “You [Ken Griffin] aren’t going to screw with us, and we are going to come after you,” signaling a willingness to pursue legal or regulatory action.

The company’s accusations gained traction after posts on X highlighted Patel’s role and the potential for heightened scrutiny under a Trump-aligned administration.

Also Read: Whistleblower Now Exposes FINRA Dark Pool Fraud, “Threatens Retirement Savings”

A Complex Relationship with Trump

Griffin’s relationship with Trump is multifaceted.

As a GOP megadonor who contributed over $100 million to Republican candidates in the 2024 cycle, Griffin initially celebrated Trump’s election, predicting “tremendous growth and economic vitality.”

However, his optimism has soured, with the billionaire now warning that Trump’s policies are tarnishing America’s global “brand” and deterring investment in U.S. assets like Treasury bonds.

Despite his criticisms, Griffin has praised certain aspects of Trump’s agenda, such as deregulation, which he called a “godsend” at the Milken Institute conference.

He also commended Elon Musk’s efforts to curb government spending through the Department of Government Efficiency (DOGE), even as Musk himself has slammed the same tax bill Griffin criticized, calling it an “abomination”.

This deregulation, however, is opening the door to more predatorial practices in the market.

The U.S. Securities and Exchange Commission’s (SEC) recent dismissal of lawsuits against certain financial dealers has ignited a firestorm of debate, with critics warning that the move could pave the way for a resurgence of toxic convertible loans—high-risk financial instruments that have long been a concern for retail investors.

The decision, which aligns with a broader deregulatory push under the Trump administration, has raised alarms about weakened oversight in the financial markets, potentially exposing small investors to predatory lending practices.

On May 15, 2025, the SEC, under the leadership of newly appointed Commissioner Paul Atkins, dismissed several lawsuits targeting dealers accused of issuing toxic convertible loans.

“This is a green light for toxic lenders to flood the market with convertible notes that crush retail investors,” said financial analyst Sarah Thompson, a frequent commentator on market regulation.

“The SEC’s job is to protect the little guy, not to open the door for more financial engineering that benefits Wall Street insiders.”

Also Read: A New System Meant To Detect Illegal Short Selling Now Uncovers Two Cases

Retail Investors Demand Accountability

The allegations against Citadel have fueled a broader movement among retail investors, who are increasingly vocal about perceived market abuses by large hedge funds.

On X, users have shared detailed analyses of $DJT’s trading patterns, claiming they show evidence of manipulative short selling.

“The SEC needs to look into Citadel’s role in $DJT.

Retail investors are getting crushed while the big players walk away,” one post read, reflecting a sentiment that has gained traction among online trading communities.

This backlash comes at a time when Citadel’s influence in financial markets is under scrutiny.

As one of the largest market makers, handling nearly a quarter of U.S. equity market volume, Citadel wields significant power.

Retail investors argue that this influence, combined with practices like naked short selling, disadvantages smaller players and distorts market fairness.

The question now is, will anything change under the Trump administration?

Back to Daily Market News.

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