Welcome back to the channel everyone today, i want to talk about the citadel investigation and what happens next? What steps the department of justice gon na take and how is this gon na impact, the amc squeeze so stay tuned and let's make some money and now i'm gon na dive straight in with the key information. So i want to start by talking about how citadel has been named in the probe and where exactly in the probe, they've been named and then later on in the video i want to talk about, what's going to happen with citadel shorts, are they going to be Forced to hold them as evidence or forced to cover, i also want to talk about if people are actually going to go to jail or just face small fines, and then obviously i want to talk about exactly how this is going to impact the squeeze, whether it Could be a squeeze catalyst or if it just means that people are going to be going to jail? So, let's start by listening to the bloomberg report and find out exactly how citadel has been named in the department of justice probe scoop on the latest when it comes to morgan stanley and that block training probe. We are hearing here that now the doj is seeking information on executives at citadel elements and others. They have names that have been highlighted here, does show just where the scope was from.

So from that article it said that people from citadel element and a few other funds have been named specifically in the department of justice probe of block trading from the bloomberg article itself. It says the list of people whose communications are being sought ranges from executives at prominent wall street hedge funds, such as andrew leaps kind at citadel's, surveyor capital, and this article here says that citadel taps whiz andrew leaves kind to trade for its 30 billion dollar hedge Fund, it goes on to say that ken griffin has hired andrew lieb's kind as a senior trader for its massive 30 billion dollar citroel hedge fund leaves kind will report directly to carl simon, the head of trading for surveyor, that citadel fund that he's working in. So therefore andrew is a very senior trader for citadel, and i don't think it will be long until the department of justice are investigating ken griffin directly. Considering that information has been requested of citadel and of andrew as well.

It means that a subpoena has been sent directly to citadel in this process and on top of that element, capital that was also named in the department of justice probe is also a fund that is owned by citadel and therefore they're, actually investigating citadel from multiple angles And not just the firm as a whole they're investigating citadel as a firm, but also a number of funds that operate within citadel and also a number of people directly affiliated with citadel that actually work there. But i also wanted to talk about what's going to happen. Next, what steps the department of justice actually going to take and how does this impact the amc squeeze? There was a few guys over in the private discord that asked what's going to happen to citadel shares, whether citadel will be forced to cover or whether they'll be forced to hold these synthetic shorts as evidence or as proof of their wrongdoing, and they also wanted to Know whether some arrests are actually going to be made or whether there's just going to be more small fines issued. Obviously i'm going to use this as an opportunity for a bit of self-promotion.

If you haven't already be sure to check out the private discord and the patreon linked in the description below over there, we always talk about all of the new amc and gamestop stories. As soon as they're released before, i even make a video to determine how it's going to impact amc and the overall squeeze. Now, if you've been wondering whether the department of justice will require citadel to hold their synthetic shorts as evidence or whether they'll force them to close, i personally think they'll force them. To close, i personally think the department of justice will require citadel to forcibly close their synthetic shares when they're discovered the assistant's log or the audit trail will have all of the evidence that the department of justice need of those synthetic shares.

All of these synthetic shares will be accounted for when they were created and all of the evidence will be contained within the system's log or within the audit trail. Therefore, the department of justice will have very easy access to this information and all the proof they could possibly need. There will be dates times exactly how many synthetic shares were created and when and at what venue. Those synthetics were sold to us, the general public or to other funds, and therefore the department of justice and the sec will force citadel to close their synthetic shorts.

As soon as possible to obviously right the first wrong, i think, in terms of the steps the department of justice will take. The first step they'll take, will be information gathering from the audit trail and from the system's logs. Now, obviously, those are going to be fairly easy downloads and exports out of the system, so that'll be a fairly short process. The department of justice and the sec will then require immediate changes such as the covering of all synthetic shorts or illegal naked shorts, and then, obviously, the department of justice will perform a longer-term investigation to determine exactly who gave the orders to create these synthetic shares and Exactly who approved those orders as well now, obviously, that part is going to take longer, but obviously the department of justice need to make sure that they are arresting and imprisoning the correct people.

I personally think considering the department of justice is now performing this investigation hand-in-hand with the fbi and the sec are taking more of a back seat. This to me suggests that people will actually end up going to jail if it was just the sec and the department of justice and the fbi never actually ended up getting involved. Then all i could really see coming as a result would be some small fines for individual funds and individual people. Considering the department of justice and the fbi have been getting involved, issuing search warrants and confiscating personal computing equipment that to me suggests, there's a much greater likelihood of people actually ending up in jail, guys if you're getting worried about holding your amc, infidelity or an e-trade Due to all the recent glitches and the fact that fidelity actually supports short sellers mumma are currently buying you, a free share of amc on top of their usual five free shares when you sign up to moomoo, using the link in the description below and make your First deposit, when you sign up to moomoo and make any deposit you get, two free shares, valued up to three thousand five hundred dollars.

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But it seems like citadel, saw this coming from a mile away and have already been trying to figure out their escape. Rizzo stonks has been doing some due diligence and some research for quite some time on the citadel securities cayman island private funds. So it seems that over the last few months, citadel securities has been moving pretty much all of its holdings overseas to the cayman islands. Citadel has an equity fund limited with 43 billion dollars, a multi-strategy equities master fund with 66 billion dollars, global fixed income master fund limited one with 117 billion and global fixed income master fund 2 with 123 billion.

All in all, that's around billion dollars, which i think is the majority of citadel's assets, if not a hundred percent of them. Now we know that citadel only manages equity of somewhere around 40 billion dollars, but due to all the leverage that they use there's around 350 billion dollars of assets. Now you may say tom: how are citadel going to be forced to cover their shorts if they've already moved all of their money to the cayman islands, where the us doesn't really have a hundred percent jurisdiction? Now i think, when the department of justice does their investigation and figures out exactly what crimes citadel has committed, i think they can do what they call piercing the veil piercing. The veil is basically where the department of justice can trace these assets even offshore to different entities or to different people and recover these assets as the result of the proceeds of crime.

Now, on top of this, in the meantime, the dtcc may end up covering this cost if they feel it's a risk to the market as a whole and to the market stability. The members of the dtcc may end up stumping up these costs in order to cover citadel's shorts and ensure that all of our shares are purchased back. This would obviously enable the citadel synthetic shorts to actually be closed and we will end up getting paid. What we want for our shares when we decide to sell and then obviously the department of justice and the dtcc can continue going off the citadel and reclaim all of this money.

That's now been moved offshore in order to make good for the dtcc's money they laid out to cover the shores, and i think, on top of this, as a small reminder to citadel employees, if you have committed crimes, it doesn't matter if a superior gave you the Order illegal is illegal and millions of retail investors will make sure you face justice. If you keep the information covered. I think it's a lot better for employees at citadel to come clean now and turn whistleblower to save your future and to ensure that you don't end up going to jail and as bozier says here, if you blow the right kind of whistle, you may even get Rewarded guys be sure to, let me know down in the comments below what you think is going to happen next in this citadel investigation and as always guys, if you enjoyed this video, be sure to check out my others. Alternatively, subscribe to channel and ding the notification bell, because that way, you'll be alerted when i upload a new video cheers.