Citadel, led by billionaire Ken Griffin, scooped up the bulk of Situational Awareness' AI stock holdings at a steep discount this week. This deal marks yet another win for Griffin in his ongoing acquisition spree targeting distressed crypto assets.
The crypto sector keeps handing Griffin valuable assets despite his reputation as a traditional finance adversary. From buying rights to a rare US Constitution print to snapping up equity in a $40 billion crypto firm, Citadel has steadily expanded its foothold through opportunistic purchases.
How the latest sale unfolded
Earlier this week, margin calls forced Leopold Aschenbrenner, a former member of the FTX Future Fund and head of an AI hedge fund, to liquidate his portfolio. Facing heavy use, the 25-year-old trader sold off his holdings to Griffin’s Citadel, which had cash ready to capitalize on the distress.
The New York Times reported the auction closed overnight with Citadel securing the stock at a “considerable reduction” compared to market prices. This scenario is reminiscent of previous episodes where crypto traders accepted last-minute lowball offers rather than risk bigger losses.
Citadel’s knack for buying discounted crypto-related assets was on full display back in November 2021, when it won a Sotheby’s auction for a print of the US Constitution. ConstitutionDAO had pooled $40 million from over 17,000 contributors but ultimately lost out partly because Griffin could track their on-chain funds and bid strategically.
This trend highlights how Citadel’s financial muscle and strategic timing continually allow it to acquire crypto assets while the industry struggles with volatility and liquidity crunches. Meanwhile, firms like Situational Awareness and young traders like Aschenbrenner face mounting pressure amid fast-changing market dynamics.
This content is informational and does not serve as financial advice.
