Tag: Citadel Scandal (Page 1 of 4)

Chicago Tribune Says Citadel Securities’ Dark Pool Targets Small Investors

Market News: Citadel Securities Dark Pools Exposed
Market News: Citadel Securities Dark Pools exposed

The Chicago Tribune just published a piece explaining exactly what retail investors have been warning the SEC about.

Citadel Securities’ dark pool dominates a big part of the financial world, accounting for as much as half of U.S. stock market activity.

The Chicago Tribune says this prominent dark pool is run by Chicago Billionaire Ken Griffin’s Citadel Securities and has been targeting small scale retail investors.

And they’re not wrong.

Dark pools are typically involved in payment for order flow (PFOF), where they pay broker firms to receive retail order flow.

Brokers such as Robinhood and TD Ameritrade accept payment for order flow.

But retail investors have now brought these nefarious practices in the market to light.

Let’s discuss it.

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Taking down Citadel’s dark pool

Citadel Securities Dark Pool
Citadel Securities Dark Pool

The Chicago Tribune has acknowledged investors’ orders almost never make it to the New York Stock Exchange (NYSE) or NASDAQ.

The editorial team say they get redirected to electronic platforms run by private market makers who match buyers with sellers at a price they determine, behind closed doors.

Citadel Securities’ dark pool is able to make money on the difference between bid and ask prices when trades are matched.

This creates major conflict of interest as the orders they fill are not competing against one another; therefore, the price is open for manipulation.

SEC Chairman Gary Gensler said himself 90% to 95% or retail’s orders do not get processed through the lit exchange.

And although light is shining on this very real problem, nothing is being done about it by our regulators yet.

“The U.S. Securities and Exchange Commission is responsible for revising its rules to keep up with technology and, here’s a surprise, the regulators have fallen behind.” – The Chicago Tribune.

But the editor says the problem is the SEC has too much on their hands and are spreading themselves thin.

They’re focused on crypto regulation, SPACs, and climate control.

It’s rather clear dark pools are not the SEC’s main priority.

Citadel Scandal

Citadel Scandal - Ken Griffin Lied
Ken Griffin – Citadel Scandal

Citadel has been heavily scrutinized by retail investors for not only heavily shorting ‘meme stocks’, but for suppressing the price driven by retail demand with its dark pool.

#KenGriffinLied began trending on Twitter earlier this year and again this month when the U.S. House Committee on Financial Services released a report confirming Robinhood and Citadel did indeed have blunt negotiations prior to trading restrictions on January 28th of 2021.

The “GameStopped” report documents in detail the events that lead to the halting of ‘meme stocks’.

Ken Griffin swore under oath that Citadel and Robinhood had no communication the day prior to the restrictions, but proof has now surfaced.

The question now is, will the case dismissed by Judge Cecilia Altonaga late last year get reopened?

The Miami district court judge admitted the Citadel and Robinhood transcripts were suspicious.

However, the federal court has dismissed the case due to a lack of evidence.

According to Business Insider, the court said that the evidence between Citadel Securities and Robinhood was not sufficient.

The retail community found Judge Cecilia Altonaga had ties to the defendant in the Robinhood and Citadel case, creating a major conflict of interest.

But mainstream media isn’t covering this.

What can be done about this corruption in the market?

Wall Street Corruption

If you’ve been one of my day-ones, you know I’ve always preached raising awareness.

Raising awareness is what gets people to learn, dive deep, and stand against market injustices.

People want to fight for a cause, people want to fight for freedom.

Instead of focusing on the things that are out of our control (SEC, market manipulation, etc.), we must focus on the things that are in our control.

And that is raising awareness to educate the population.

I truly believe this is the way to creating real change.

If this resonates with you, please be sure to give this article a social share.

It all starts with us, one by one, as individuals.

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Bank of America Increases Short Position in AMC

Market News: Bank of America AMC
Market News: Bank of America increases AMC puts

Bank of America and JP Morgan continue to bet against AMC despite the repercussions.

Like hedge funds, banks have also been under much public scrutiny for betting short in the market.

Regulators subpoenaed some of the largest banks and hedge funds after investigating communications between the two parties earlier this year.

Goldman Sach’s dark pools were investigated in May – a popular issue amongst the retail community.

Combined, hedge funds and banks have millions of shares working against the largest movie theatre chain in the world.

And in this article, I’m going to break down the most recently reported numbers.

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Bank of America bets against AMC Theatres

Market News: Bank of America Increases Short Position in AMC
Market News: Bank of America increases short position in AMC

Bank of America increased their short bets against AMC in May, according to this Fintel report.

The bank now holds a total of 1,007,500 puts of AMC Entertainment Holdings, Inc. stock.

Retail investors were shocked to discover BofA was one of the top 10 financial institutions betting against the movie theatre chain last year.

And they haven’t left, but rather remained bearish on AMC.

The ball might be in their court in today’s bear market, but retail investors are already weary of the market’s integrity.

Last year, hedge funds sought out to destroy the movie theatre chain by shorting it to bankruptcy.

But retail investors put a stop to the madness – saving AMC Entertainment from collapsing, and inflicting billions of dollars in damage to short sellers.

Retail investors even closed their bank accounts with Bank of America after discovering the bank was betting against the beloved movie theatre stock.

Meme stocks were no joke.

Corporate fraud and corruption were exposed, retail made money, and the media lost all credibility.

But Bank of America isn’t the biggest bear when it comes to AMC stock.

Here’s a list of other banks and hedge funds going short on AMC.

Institutions shorting AMC stock

Institutions shorting AMC stock - who is shorting AMC
Who is shorting AMC?

#1. Susquehanna – 11,004,100 shares short

#2. Citadel – 4,889,900 shares short

#3. Goldman Sachs – 2,785,00 shares short

#4. Group One – 2,221,900 shares short

#5. 683 Capital – 1,992,600 shares short

#6. Bank of America – 1,007,500 shares short

#7. Wolverine Trading – 921,400 shares short

#8. Piction Mahoney – 500,000 shares short

#9. JP Morgan – 400,000 shares short

None of these institutions have closed their positions in AMC.

One hedge fund that was removed from the list is Sculptor Capital LP – the institution closed their small position at a loss this year according to Fintel.

Anchorage Capital closed last year after betting against AMC.

The hedge fund held 4,000,000 puts prior to shutting down.

Even Gabe Plotkin’s Melvin Capital is shutting down in June after GameStop crippled the short seller last year.

Bank of America might have increased their short position in AMC, but is it wise to bet against retail?

Retail has power, and I think retail is about to prove it again very soon.

I’m interested to learn what you think.

Leave your thoughts in the comment section of the blog below.

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Citadel Pushes Back on Possible SEC PFOF Ban

SEC PFOF Ban
Market News: SEC PFOF Ban threatens corrupt institutions

The SEC is addressing the possibility of banning PFOF (payment for order flow).

Citadel and other institutions are speaking out.

Gary Gensler said there may be a conflict of interest for brokers and that too much power is concentrated in a handful of market makers.

The SEC Chairman could be re-routing retail investors into an automated system that would provide a deep pool of liquidity.

If this goes through, it will be historic.

Let’s discuss it.

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SEC Payment For Order Flow ban

SEC PFOF Ban

Gary Gensler will be speaking on Wednesday in regard to best execution for market orders.

The SEC has been under heavy scrutiny by retail investors as the agency has not made any progress to level the playfield.

The government branch that’s supposed to protect retail investors has even gone as far as taunting investors for buying ‘meme stocks’ recently.

But industry participants have quietly been saying that Gensler will likely use a speech at the Piper Sandler Global Exchange Conference on Wednesday to float several proposals.

These may include best execution and payment for order flow according to CNBC.

Last year during the ‘meme stock’ frenzy, Citadel processed retail’s orders through Robinhood.

Citadel paid Robinhood to give them those orders (PFOF).

However, retail investors don’t want their orders going to Citadel since the market maker/hedge fund/dark pool are short on ‘meme stocks’.

90%-95% of retail’s orders are not processed though the lit exchange.

Citadel takes these orders and trades them at a bargain through foreign exchanges.

Although PFOF is an expense to them, they make a lot more money processing the orders.

If the SEC PFOF ban goes through, orders would not be processed by Virtu or Citadel.

Citadel fights back

A spokesperson for Citadel Securities released the following statement to CNBC:

“It is important to recognize that the current market structure has resulted in tighter spreads, greater transparency, and meaningfully reduced costs for retail investors. We look forward to reviewing the proposals and working with the SEC and the industry towards our longstanding objective of further improving competition and transparency.”

“You need to be very deliberate on that approach,” Ken Bentsen, president and CEO of the Securities Industry and Financial Markets Association (SIFMA) said.

“We have been calling for a review of market structure for some time, but let’s be careful not to try to fix things that may not be broken,” he said. “The retail investor is getting a better deal than they ever have.”

Would you pay small trading fee if it meant Citadel and Virtu no longer reroute your orders to benefit their pockets?

Leave a comment below.

The statement alone that retail is getting a better deal than ever before is such a dishonest thing to spew.

These institutions have been taking retail’s money, using it against them, all while taking no accountability for their actions.

It’s not clear yet whether the SEC PFOF ban will go through or not.

It is certainly something worth discussing though, don’t you think?

Leave your thoughts below.

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Ken Griffin Attacks: “Pension Plans Destroyed by Retail Investors”

Ken Griffin on Retail Investors
Market News: Ken Griffin on retail investors

Ken Griffin accused the retail community of destroying teacher’s pension plans by taking down Gabe Plotkin’s Melvin Capital.

Melvin Capital is a hedge fund that was short on ‘meme stocks’ holding a large position in GameStop.

The company is scheduled to shut down in June after it had suffered a 50% loss in 2021, and an additional 20.6% in the first quarter of 2022.

Sources say Melvin Capital has already begun to liquidate its positions to pay back investors in cash.

In this Bloomberg exclusive, Ken Griffin plays a role of the victim, defending Mr. Plotkin and the hedge fund whose mission it was to bankrupt GameStop.

Ken Griffin’s Citadel is also short on AMC Entertainment – the hedge fund lost billions last year betting against retail.

Let’s discuss it.

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CNBC mourns the loss of Melvin Capital

CNBC says Melvin was one of the biggest victims from the meme stock frenzy last year due to its large short position in GameStop.

They say Citadel and Point72 had to provide Melvin Capital with a lifeline to stay above the water.

The hedge funds combined provided Gabe Plotkin with $2.75 billion in capital last year.

However, as things went south quick for Melvin, both hedge funds demanded the capital back.

Something Ken Griffin and his affiliates fail to mention.

Mainstream media has also danced around the fact that hedge funds planned to wipe American companies by overleveraging their short positions during the pandemic.

Success in doing so would delist AMC, GameStop, and other meme stocks from the stock market.

Betting against companies with intention to bankrupt them to the ground is no charity work.

It’s un-American and a nefarious practice that has dragged out for too long.

Ken Griffin blames retail investors

In the video below, Ken Griffin gives his thoughts on retail investors and the entire ‘meme stock’ phenomena.

Ken Griffin takes a jab at the retail community saying retail investors who aimed to bankrupt Melvin Capital also wiped-out pension funds from teachers.

But Ken, retail investors don’t get up in the morning and think to themselves, “let’s wipe out a multi-billion-dollar hedge fund.”

Melvin Capital lost because he went against retail – the first time in history the people fight back corruption in the stock market, and win.

Ken Griffin lost billions shorting AMC stock, the retail community is currently his biggest adversary.

AMC shareholders continue to buy and hold the stock until short sellers exit their positions, which will result in a short squeeze.

Today’s retail investors are armed with education, they understand what they hold and what it’s doing to hedge funds.

While Ken Griffin and affiliates might be pumping a narrative as victims, high profiles such as Elon Musk, Jon Stewart, and Ryan Cohen have stood up against short sellers.

For the first time in history, Wall Street is getting their a** kicked, and these hedge fund managers certainly do not like that.

Hedge funds should prepare for bigger losses

Institutions are about to lose a massive amount of collateral due to executive order 14032 in early June.

This presidential order is prohibiting Chinese securities to be used as collateral starting June 2nd, 2022.

It was responsible for initiating margin calls when AMC Entertainment stock rose to $20 per share in January, and $72 per share in June of last year.

With liquidity drying up in global markets, it’s going to be quite difficult for hedge funds to keep up with margin requirements on heavily shorted ‘meme stocks’.

Massive selloffs in the market have proved just how distressed financial institutions are.

We’re seeing for the first-time hedge funds begin to shut down as they take the lead in liquidity burn.

Retail investors have been the majority of buyers in today’s markets according to Bank of America.

Hedge funds are headed towards a larger train-wreck of disaster they cannot get off of.

As they continue to tank the markets, margin requirements go up thanks to DTCC B16845-22.

Hedge funds have lost control.

But I’m curious to know what you think.

Leave your thoughts in the comment section of the blog below.

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Archegos Founder Bill Hwang Has Been Arrested with 11 Criminal Counts

Bill Hwang has been arrested with 11 criminal counts
Market News: Bill Hwang has been arrested for market manipulation

Archegos founder Bill Hwang and CFO Patrick Halligan were arrested and charged with 11 criminal counts.

Federal prosecutors said Bill Hwang used Archegos as an “instrument of market manipulation and fraud.”

The hedge fund managed to inflate its portfolio from $1.5 billion to $35 billion before its collapse, causing massive losses for banks and investors.

Let’s break down everything that’s happening, together.

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Bill Hwang and Patrick Halligan arrested for market manipulation

Bill Hwang gets arrested

Before he lost it all, Bill Hwang was worth $20 billion and was known as one of the greatest traders you could have heard of.

Hwang’s $20 billion net worth was almost as liquid as a government stimulus check.

And then, in two short days, it was gone.

The sudden implosion of Hwang’s Archegos Capital Management in late March is one of the most spectacular failures in modern financial history.

No individual has lost so much money so quickly, via Bloomberg.

Bill Hwang’s wealth briefly peaked at $30 billion.

He used swaps, a type of derivative that gives an investor exposure to the gains or losses in an underlying asset without owning it directly. 

Another leverage tool hedge funds have access to, which concealed both his identity and size of his positions.

You’d think a regulatory agency would exist right?

Don’t count on the SEC.

On March 26th, investors learned that Archegos had defaulted on loans used to build a $100 billion portfolio.

Credit Suisse, one of Bill Hwang’s lenders, lost $4.7 billion.

How did Archegos manipulate the stock market?

Bill Hwang’s Archegos essentially used a ton of leverage to pump stock prices up.

As the price of stocks rose, they would buy more shares with those profits, and continue to borrow money from the bank to further pump the prices.

Archegos only held a small portfolio consisting of a few selected companies, of which whom they had many shares of.

When a few companies’ share prices began to plummet, Hwang’s entire empire crumbled almost instantaneously.

As the value of their portfolio sank, the hedge fund was forced to liquidate even more assets due to margin calls, further escalating the situation, and losses.

Archegos was forced to default, causing investors and banks billions of dollars.

Bill Hwang already had a troubled history with hedge fund Tiger Asia, who was shut down by the U.S. for insider trading and for manipulating Chinese stocks.

Still, Bloomberg vouches for Bill Hwang publishing an article he has done nothing wrong.

What was Bill Hwang charged with?

Hwang and Chief Financial Officer Patrick Halligan were charged with 11 criminal counts overall, including racketeering conspiracy, market manipulation, wire fraud and securities fraud. 

Hwang was arrested early Wednesday and was expected to appear in Manhattan federal court later in the day. 

This is a developing story.

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DTCC Makes Plans to Implement T+1 in 2024

T+1

The DTCC just announced they play to implement T+1 in the year 2024.

On February 9 the DTCC held a meeting to change the trading cycle from T+2 to T+1.

But is this change too far out?

I’m going to break down the benefits of T+1 as well as what the DTCC has to say regarding the lengthy time.

Also, what T+1 would mean for AMC and GME shareholders.

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What is T+1?

T+1, T+2, and T+3 refer to the number of days it takes for a security to settle after it has been traded.

T+1 means that if a transaction occurs on a Monday, settlement must occur by Tuesday.

Likewise, T+3 means that a transaction occurring on a Monday must be settled by Thursday.

We are currently on T+2 and have been since 2017.

So, what is T+0?

T+0 is a shortened settlement cycle where trades are settled the same day of transaction.

The DTCC recently argued that T+0 is rather complicated to achieve at the moment and is nearly impossible today due to how many orders flood the market daily.

They commented that as T+1 is implemented, they will monitor its progress to see how they may accommodate to T+0 at some point in the future.

When will T+1 happen?

DTCC T+1

The DTCC and SEC have established that T+1 will occur during the first or second quarter of 2024.

The DTCC is in favor of making this change in the first quarter of 2024 while the SEC feels like they will need more time and would like T+1 to go into effect during the second quarter.

T+1 is certainly a step forward; however, retail investors feel like this settlement day should be implemented sooner.

The DTCC and SEC agree that the process to implement this settlement day will require time.

Regulators have acknowledged that systemic risks may surface due to delayed settlement days, such as our current T+2.

Let’s talk about the risks of delays settlement trades.

Risks of T+2

Momentum stocks, also known as ‘meme’ stocks, proved last year when just how risky delayed settlement trades were when Robinhood ran out of liquidity to meet customer demands.

Robinhood is notoriously known for restricting retail investors from purchasing AMC, GameStop, and other ‘meme stocks’ due to liquidity issues.

The problem began due to delayed settlement trades.

So many orders were being processed and registered that by the time they were settled, liquidity had run dry forcing Robinhood to halt trading of these specific stocks.

The only problem here is that market makers are responsible for providing liquidity to broker firms such as Robinhood.

Robinhood makes money by sending retail orders to one of the biggest market makers in the world, Citadel.

Citadel at the time was losing billions from betting on AMC and GameStop.

This is where the Citadel and Robinhood scandal started, the day a losing market maker colluded with the broker to halt trading in order to prevent further losses.

Could T+2 be used as a copout for what occurred last year during the halts?

Be sure to leave a comment at the end of the article.

How would T+1 affect AMC and GameStop?

T+1 would not only affect AMC and GameStop, but it would ensure every stock in the market is settled one day after the purchase.

It would eliminate room for market makers to create naked shares during the settlement delay.

According to the SEC, in a “naked” short sale, the seller does not borrow or arrange to borrow the securities in time to make delivery to the buyer within the standard two-day settlement period

T+3 was removed years after the 08 crisis.

Now T+2 is scheduled to be removed three years after the ‘meme stock’ frenzy.

The change retail has been wanting to see is going to happen, but it’s going to take time.

As settlement trades get shortened, we can expect to see less risk in the market and less market manipulation.

Of course, there are still many predatorial strategies in the market that must be addressed.

Some of which include dark pool trading, off exchange trading, and short and distort campaigns where short sellers and media collude to drive the price of a stock down.

Related: How do hedge funds manipulate the stock market

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Tiger Global Hedge Fund Sinks a Massive 34% This Year

Tiger Global Hedge Fund Sings 34%
From left, Chase Coleman III, Scott Shleifer, and John Curtius. Photos by Bloomberg. Art by Mike Sullivan, Edited by Frank Nez

Tiger Global has an AUM of $95 billion, that’s $57 billion more than Citadel’s AUM of approximately $38 billion.

The monster hedge fund is managed by Chase Coleman, 46, who was up until now considered to be a hedge fund legend.

Tiger Global Management had a rough 2021 according to sources and losses are piling up in 2022.

Hedge funds seem to be in a lot of distress recently.

Let’s break it down together.

franknez.com

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Hedge funds face turbulence in 2022

Tiger Global

This year we’ve seen many hedge funds face massive adversity.

Hedge funds have been dealing with significant losses this year, probes from the DOJ, and scrutiny from retail investors.

Hedge fund managers once deemed leaders in their industry now have their reputation on the line.

Gabe Plotkin was named a great trader by Citadel’s Ken Griffin although the hedge fund had to bail Melvin Capital out due to the ‘meme stock’ frenzy.

Citadel pulled $2 billion from Melvin Capital in recent months.

Chase Coleman is in a sticky situation too.

Tiger Global Management is down 34% this year through March.

The speed of the reversal has shocked just about everyone, considering that Coleman is celebrated as one of his generation’s brightest stars, a standout among the elite money managers mentored by the famed Julian Robertson, Bloomberg.

Tiger Global Management treads rocky waters

The bad run has been fueled by massive bets on stocks that have been hammered, such as fast-growing tech companies in the U.S and China.

Tiger Global hedge fund lost 7% last year, its first annual drop since 2016 and its third total, according to Bloomberg.

Tiger Global told clients in a letter that it’s opening up both its hedge and long funds to a limited amount of capital from existing investors to bolster positions in stocks that underperformed

However, we see the results in the first quarter of 2022 has not been what the hedge fund anticipated.

Built by Coleman and his partner Scott Shleifer, Tiger Global has long been seen as a throwback to the industry’s glory years, when double-digit returns were the norm and ‘hotshot managers’ unerringly backed winning companies and shorted the losers.

Across the firm’s $35 billion in funds focused on public companies, this year’s losses have triggered a more than $10 billion hit to investors that include foundations, endowments and pension funds, as well as Tiger Global insiders.

Coleman’s personal wealth has dropped by $1.3 billion, according to calculations by the Bloomberg Billionaires Index. 

Coleman’s hedge fund headed towards worst year

Tiger Global hedge fund may be on track for one of its worst years yet.

Tiger Global Hedge Fund

The blue in this chart indicates the hedge fund’s losses in 2008, 2016, 2021, and 2022.

The firm’s first serious bump was during the 2008 financial crisis, when it lost 26%, followed by a 1% gain the next year.

While markets were already jittery this year due to high inflation and expectations of rate hikes, Russia’s war against Ukraine triggered a flight from risk. 

The Russia-Ukraine conflict has affected every corner of the financial sector.

Earlier we saw Citadel and other hedge funds faced default on Russian bonds from tech company Yandex.

But Tiger Global Management isn’t the only hedge fund struggling.

Investors are pulling out $250 million from Coatue Management and the hedge fund cannot meet its investors demands.

We’re beginning to see this domino effect of losses begin to catch up to even the biggest hedge funds in the world.

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I’d love to hear your thoughts on the matter.

Leave a comment in the comment section down below.

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More Than 100 Hedge Funds Stranded in Cayman Islands

More than 100 hedge funds stranded in Cayman Islands
More than 100 hedge funds have a collected $6 billion sanctioned in the Cayman Islands

(Bloomberg) Sanctions against Russian Billionaire have left more than 100 hedge funds and private equity firms’ money stranded in the Cayman Islands.

Concord Management has $6 billion at its disposal, most of which pertains to Oligarch Abramovich.

The firm is said to have handed out checks of millions of dollars to more than 100 hedge funds.

Now these hedge funds have a collected amount of $6 billion stranded in the Cayman Islands.

I’ll get to the names of some of the biggest hedge funds below.

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Firms trapped with Russian cash

Bloomberg’s Anna Edwards says sanctions prohibit hedge funds from getting rid of tainted money.

The restrictions also put a hold on the collection of fees.

The Russian-Ukraine war has made it impossible for Russian oligarchs to accept new cash or redeem their stakes.

More than 100 hedge funds are caught up in sanctions trapped with Russian cash according to Bloomberg sources.

Firms with Abramovich’s money can continue to manage it, but what they can’t do is redeem the oligarch’s stake, accept new cash from him or allow him to sell his shares to another investor, according to Cayman Island rules, where many of the funds have offshore entities.

If a firm owns the billionaire money due to the sale of an asset, the proceeds must go into a blocked account.

Firms can also charge fees but cannot collect them until restrictions are lifted.

Millennium Management and other big hedge funds have been affected

Citadel Cayman Islands
Citadel Cayman Islands

Michael Matlin, who founded Concord in 1999, mostly steered money to the biggest and best-known funds.

Over more than two decades, Brevan Howard Asset Management, Millennium Management, Carlyle Group Inc., D.E. Shaw & Co., Sculptor Capital Management Inc. and Apollo Global Management Inc. — as well as smaller firms including Sarissa Capital Management and Ratan Capital Management.

Some of you might recognize Millennium Management from the list of top 10 financial institutions shorting AMC stock.

Sculptor is one of the hedge funds along with Citadel who are facing potential default on Russian bonds.

This SEC report also shows Citadel has funds in the Cayman Islands while this SG 13 form shows the relationship to Concord.

Representatives from the firms declined to comment on the matter.

Russian sanctions cripple Abramovich

Abramovich Chelsea

Abramovich, 55, with a net worth of $13.7 billion according to the Bloomberg Billionaires Index, amassed his fortune from the sale of privatized assets acquired from the former Soviet Union, including oil giant Sibneft and Aeroflot.

He sold his aluminum assets to fellow oligarch Oleg Deripaska, but retains stakes in companies including Russian steelmaker Evraz.

He’s been reinvesting the proceeds in trophy assets for two decades, including purchasing Chelsea Football Club, London properties and private jets.

He’s being forced to sell Chelsea and has moved his superyachts to Turkey out of the reach of European sanctions.

CNN says Citadel’s Ken Griffin is joining the Ricketts family, the owners of Major League Baseball’s Chicago Cubs, in a formal bid for Chelsea Football Club.

Interesting.

I’d love to hear your thoughts in the comment section below.

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BREAKING: Citadel Under Investigation by Department of Justice

DOJ is investigating Citadel
The DOJ is investigating Citadel for market manipulation

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.

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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 under investigation by DOJ Bloomberg

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 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 Hedge Fund Probe
Muddy Waters Hedge Fund Probe – DOJ Investigates Citadel

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.

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Read: How do hedge funds manipulate the stock market


Wall Street Journal is Indirectly Owned by Citadel’s Ken Griffin

wall street journal is owned by Ken Griffin

Wall Street Journal just published a piece on the AMC community where the conflict of interest is only so obvious.

They refer to the community as a mob and disrespect AMC’s CEO Adam Aron by saying apes made the CEO “play by their rules.”

WSJ tries to discredit the CEO and portrays the community as an entirely different culture than what it is.

Come to find out, Ken Griffin actually owns Wall Street Journal, well sorta.

Let’s dive right into it.

franknez.com

Welcome to Franknez.com – the blog that fights FUD media. When the community is getting attacked you know we’re doing something right.

Let’s get started!

Now, we can’t be too harsh on the two writers who published this article.

Afterall, they’re just doing their job, right?

Who owns the Wall Street Journal?

The Wall Street Journal is owned by News Corp., a company where Ken Griffin’s Citadel has a stake in.

Who owns Wall Street Journal? Source, Investopedia

News Corp is Wall Street Journal’s parent company.

Not only do they have ownership of the Wall Street Journal, but they also own other DOW Jones assets such as the Dow Jones Newswire.

Other media brands by the DOW Jones include Barrons and MarketWatch, media companies who have been attacking AMC Entertainment all year.

DOW Jones Media Brands
DOW Jones Media Brands

All these finance media platforms are tied and owned by News Corp.

So, where does Ken Griffin come in?

Ken Griffin Owns Almost 1.4 Million Shares of News Corp.

Ken Griffin owns news corp
Ken Griffin owns News Corp, source

CEO of Citadel Securities, Ken Griffin owns News Corp, the company that has ownership over Wall Street Journal, Barrons, MarketWatch, DOW Jones, and other media outlets spewing ill words of AMC Entertainment and its community.

Citadel Securities is on the top 10 list of hedge funds shorting AMC stock.

Anchorage Capital, who was also on that list just closed down after betting against AMC.

The hedge fund had an 18-year run.

There’s a major conflict of interest when the owner of all these companies is using them to pump propaganda to fit a nefarious agenda.

Citadel Securities attempted to bankrupt AMC Entertainment earlier this year but failed after retail investors saved the company.

Because AMC stock has a short squeeze set up, retail investors are not leaving until overleveraged hedge funds have closed their short positions in AMC.

Though the multi-billionaire has the power to influence these companies, the community has the power to expose these untrustworthy media platforms.

And that’s enough to raise awareness.

The Fall of Hedge Funds and FUD Media

Both hedge funds and FUD media platforms face intense scrutiny from investors.

Not only are hedge funds such as Citadel Securities causing financial turmoil for their clients, but financial news platforms are now being exposed as being tied to manipulation tactics.

What can the community do to fight against this manipulation?

It’s simpler than you might think.

By raising awareness.

The more people are educated, the more they will have a clear conscious of what news to consume and what financial path to follow.

These mainstream finance platforms have cost the public so much money.

By scaring them out of their money, they missed the opportunity to secure a position in AMC Entertainment when it traded low.

AMC stock is currently up more than 1300% year-to-date.

Share This News

franknez.com

Share this news to raise awareness.

Your voice is a weapon against the corruption in our financial system.

And a special thanks to Kat for bringing this information to my attention.

Together, the community will reshape how we invest, with honor and with integrity.

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Read: How do hedge funds manipulate the stock market?

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