BroadChain Financial learned that on July 29th, according to Cointelegraph, Andrew Left, the founder of the short-selling financial research company Citron Research, has been accused of securities fraud. It is alleged that Andrew Left made a profit of $16 million by misleading retail investors through “bait and switch” stock recommendations.
The U.S. SEC stated in a declaration on July 26th that Andrew Left is a strong cryptocurrency skeptic who uses social media and television programs to recommend stocks in which he holds short or long positions. This created an illusion that his public comments on these stocks were consistent with his company’s trading activities, even though in many cases he would “trade against the recommendation.”
The U.S. SEC further stated, “This fraudulent conduct deceived investors and allowed Left to use his Citron Research reports and tweets as a catalyst for short-term profits.”
Previously, Andrew Left and Citron Capital were charged by the U.S. Securities and Exchange Commission (SEC) and the Department of Justice (DOJ) for allegedly committing fraud amounting to millions of dollars.
It is reported that Citron Research is one of the most famous short-sellers of GameStop and announced in June 2024 that they would no longer short GameStop.
