- Austin Private Wealth shorted 12M Trump Media shares pre-assassination.
- Technical glitch cited as reason for erroneous short order.
- SEC launches investigation into potential insider trading.
- BlackRock distances itself from the incident and condemns violence.
BlackRock’s Affiliate Involved in Suspicious Trading Before Trump Assassination
BlackRock-affiliated Austin Private Wealth shorted 12 million shares of Trump Media Technology Group (DJT.O) just before the assassination of former President Donald Trump. This action, reported on July 21 by BlockBeats and Decripto, has sparked significant controversy and suspicion of potential insider trading.
Technical Glitch or Insider Trading?
Austin Private Wealth, which manages approximately $1 billion in assets with major shareholders like BlackRock and Vanguard, attributed the massive short order to a technical glitch. The firm stated, “The actual size of the order should have been much smaller and should have been for a different security.”
Despite this explanation, the timing of the short sale, coinciding with such a pivotal and tragic event, has not gone unnoticed by the market and regulatory bodies. The SEC has initiated an investigation into Austin Private Wealth’s internal communications and trading records to uncover any potential misconduct. Should evidence of illegal activity emerge, the firm could face substantial penalties.
SEC’s Investigation
The SEC’s swift response underlines the seriousness of the allegations. By scrutinizing Austin Private Wealth’s internal communications and trading records, the SEC aims to determine if there was any premeditated insider trading involved. The potential for severe penalties looms if the investigation uncovers wrongdoing, adding to the already tense atmosphere surrounding the incident.
BlackRock’s Response to the Incident
Adding another layer to the controversy, BlackRock issued a statement distancing itself from Thomas Matthew Crooks, the assassin linked to the tragic event. The statement emphasized, “BlackRock strongly condemns any form of political violence and will do our part to promote civilization and unity in the country.” Notably, Crooks had appeared in past BlackRock commercials, raising further questions about the connections between the entities involved.
