Citron

when

Andrew Left, a controversial figure behind Citron Research, renowned for his critical stance on crypto and often bearish stance on various high-profile stocks, has found himself on the other side of the law. 
Recently <a href="https://www.sec.gov/newsroom/press-releases/2024-89" target="_blank" rel="noopener nofollow">charged</a> by the US Securities and Exchange Commission (SEC), Left is accused of orchestrating a deceptive $20 million scheme that manipulated stock prices for personal gain. 
This turn of events casts a long shadow over his career, particularly ironic given his past accusations that the cryptocurrency sector was “a complete fraud.” 
<h2 id="details-of-the-allegations">Details of the Allegations</h2> 
In Left’s case, federal prosecutors said he carried out a “systematic scheme to drive market prices in the stock markets” by issuing public recommendations. 
In its complaint, the SEC detailed a scheme in which Left purportedly gained over $10 million by initiating stock volatility through his forecasts and then <a href="https://bitcoinist.com/bitcoin-important-levels-buying/" target="_blank" rel="noopener ">strategically reversing</a> his market positions. 
In one noted instance, he allegedly dumped shares of a targeted stock right after they had a big price run — even though his earlier promises would have required him to hold on until much higher prices. Kate Zoladz, Director of the SEC’s Los Angeles Regional Office, commented on this case, noting: 
<blockquote>
 Andrew Left took advantage of his readers. He built their trust and induced them to trade on false pretenses so that he could quickly reverse direction and profit from the price moves following his reports. We uncovered these alleged bait-and-switch tactics, which netted Left and his firm $20 million in ill-gotten profits, and we intend to hold Left and his firm accountable for their actions.
</blockquote> 
According to the SEC, this &nbsp;maneuver <a href="https://www.cnbc.com/2024/07/26/short-seller-andrew-left-charged-with-fraud-by-prosecutors-sec.html" target="_blank" rel="noopener nofollow">involved</a> Left “bragging to his colleagues” about manipulating market behavior, likening it to “taking candy from a baby.” 
Compounding his legal issues, Left was also accused of victimizing retail investors who are often less well-informed and more susceptible to <a href="https://bitcoinist.com/capo-of-crypto-altcoin-season/" target="_blank" rel="noopener ">market movements</a> influenced by seasoned analysts. 
The SEC argues that Citron Research was falsely presented as an “independent research outlet that had never received compensation from third parties to <a href="https://bitcoinist.com/kamala-harris-finds-ally-in-ripple-ceo-brad-garlinghouse-amid-crypto-backlash/" target="_blank" rel="noopener ">publish information</a> about target companies, when in fact,” Left had undisclosed financial arrangements with several hedge funds. 
Moreover, Citron Capital, which Left claimed to be a successful long/short hedge fund he operated, was an empty structure for managing his funds and did not have external investors. 
<h2 id="left-s-critic-stance-on-crypto">Left’s Critic Stance On Crypto</h2> 
Left appears to have&nbsp;had a&nbsp;<a href="https://bitcoinist.com/vp-harris-to-fire-gensler-to-win-crypto-voters/" target="_blank" rel="noopener ">skeptical stance</a> on crypto for a while,&nbsp;and he became more vocal about it back in 2022. Particularly, in a conference organized that year, the Citron Research founder described cryptocurrencies as a “fraud.” 
As <a href="https://www.reuters.com/business/finance/citrons-left-says-crypto-is-complete-fraud-2022-07-11/" target="_blank" rel="noopener nofollow">reported</a> by Reuters, Left particularly stated: “I think crypto is just complete fraud, over and over and over.” It is worth noting that despite his skeptical stance on <a href="https://bitcoinist.com/bitcoin-takes-over-las-vegas-sphere-first-crypto-to-be-displayed/" target="_blank" rel="noopener ">cryptocurrencies</a>, Left never specifically disclosed if he has any investment in them. 
Meanwhile, in the same conference, Left was asked about the US Department of Justice (DOJ) initiating a probe into short selling (which has now led to his latest charge from the SEC) by hedge funds and research firms, including Citron. Left commented then, noting: 
<blockquote>
 As the DOJ, you know, hopefully, one day development will realize that this boogeyman, or short sellers, doesn’t exist.
</blockquote> 
<img loading="lazy" decoding="async" class="size-medium" src="https://www.tradingview.com/x/uz2yeoBX/" alt="Crypto TOTAL Market Cap on TradingView.com" width="2770" height="1496"> 
Featured image created with DALL-E, Chart from TradingView

Here’s How This Short Seller Who Is a Crypto Critic Hit a Legal Snag with the SEC

Innholdsfortegnelse

Bitcoinist

Andre artikler publisert på 27. juli 2024

Senate candidate John Deaton says more than 80% of his net worth is in Bitcoin

Why SpacePay Could Be Game Changer in Crypto Payments

Bitget Launches Futures Trading as Top Meme Coin Presale Expands at Lightning Velocity

Pawfury Achieves $4.5 Million Milestone, Announces Public Trading Plans

Trump and Kennedy Seek Crypto Votes at 2024 Bitcoin Conference, While Harris Plays Catch-Up

Bitcoin Hashrate Nears All-Time High As BTC Price Recovers Above $67,000

Bli med på vårt gratis nyhetsbrev for daglige kryptooppdateringer!