TechFlow news — On July 26, the U.S. Securities and Exchange Commission (SEC) issued a statement accusing Andrew Left, founder of well-known short-selling firm Citron Research, of securities fraud and illegally profiting $16 million.
The SEC alleges that Left used social media and television appearances to recommend stocks in which he held long or short positions, creating a false impression that his public commentary aligned with his firm's trading activities. In reality, Left frequently bought shares immediately after advising readers to sell, or sold immediately after recommending purchases.
The SEC claims that between March 2018 and December 2023, Left engaged in 26 illegal trades involving 23 companies, including Nvidia, American Airlines, Alibaba, Meta, and X (formerly Twitter).
Simultaneously, the U.S. Department of Justice has filed criminal charges against Left for securities fraud and making false statements to federal law enforcement regarding hedge fund compensation. If convicted on all 18 fraud-related counts, Left could face up to 25 years in prison.
Notably, Left publicly criticized the cryptocurrency industry as fraudulent in July 2022, and in February this year called for shorting Coinbase stock.
Previous report: GameStop short-seller Citron Research ceases shorting $GME, calling Roaring Kitty's livestream an insult to capital markets.
