Ken Griffin Sold NVDA Before Tech Giants’ Securities Fraud Suits Plea

Ken Griffin sold NVDA before tech giants’ securities fraud suits plea, which would make it harder for private litigants to hold companies to account.

It was reported on October 24 that billionaire Ken Griffin sold 79% of Citadel’s stake in Nvidia (NVDA), just a week prior to Facebook (META) and Nvidia’s plea to the US Supreme court asking to spare them from securities fraud suits.

Retail investors on social media raise the question whether there is a connection between the two.

Griffin’s Citadel Securities, who is perceived as Wall Street’s biggest securities violator since Madoff by retail investors, has a troubling history with manipulating the markets.

In October of this year, FINRA fined Citadel Securities LLC $1 million with failure to report data accurately and on time for tens of billions of equity and options order events to the Consolidated Audit Trail (CAT) Central Repository, starting from June 22, 2020, until August 28, 2024.

Just a month prior — in September — the SEC charged Citadel Securities $7 million after it found that for a five-year period, the firm incorrectly marked millions of orders, inaccurately denoting that certain short sales were long sales and vice versa.

“Compliance with the order marking requirements of Reg SHO is a key component of regulatory efforts to curtail abusive market practices, including ‘naked’ short selling,” said Mark Cave, Associate Director of the SEC’s Division of Enforcement.

Citadel’s long history of market manipulation has drawn severe scrutiny from Main Street.

Both Facebook and Nvidia are now fighting to exit securities fraud suits for misleading their investors according to Reuters.

Whether the connection holds any merit is something that’s going to require further investigation.

In the meantime, the observed events are a developing story.

Follow me on X for regular updates.

Also Read: JPMorgan CEO Has Now Become The Target of Over 200 Investigations

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About The Author

Frank Nez

Frank Nez is an American retail journalist whose research has been cited by SEC and Congressional reports. Frank Nez has been featured by prominent outlets such as TheStreet and NewsBreak. ‘Daily Crypto News’ is now an official CoinMarketCap news source.

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