The US Securities and Exchange Commission (SEC) has sent subpoenas to major Wall Street banks seeking information related to trading activity at hedge fund Situational Awareness, Bloomberg reported Monday, citing people familiar with the matter.

The fund came under pressure and was forced to exit many of its positions last month, the people said, according to the report.

Situational Awareness began liquidating equity positions amid a barrage of margin calls during last month's AI stock rout, with Citadel stepping in to buy the bulk of its public stock bets, the report said.

Situational Awareness said in a statement Monday that it is a highly regulated business and will cooperate fully with any regulatory request, adding that scrutiny is expected for funds that are high-profile, generate significant returns, or experience dramatic drawdowns, Bloomberg reported.

SEC did not immediately respond to a request for comment from MT Newswires.

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