Bitrabo Editorial
Andrew Left, known for his critical views on cryptocurrency and bearish opinions on prominent stocks through Citron Research, is now facing legal trouble.
The US Securities and Exchange Commission (SEC) recently filed charges against Left, accusing him of orchestrating a deceptive $20 million scheme to manipulate stock prices for personal profit.
This development raises questions about his credibility, especially given his past condemnation of the cryptocurrency industry as “a complete fraud.”
The Allegations Uncovered
According to federal prosecutors, Left is alleged to have conducted a systematic plan to influence market prices by issuing public recommendations that would affect stock markets.
The SEC’s complaint outlined a scheme in which Left reportedly made over $10 million by creating stock volatility with his forecasts and then strategically reversing his market positions for financial gain.
In a specific case, he supposedly sold shares of a targeted stock immediately after a significant price surge despite initially suggesting he would hold them for higher prices. Kate Zoladz, from the SEC’s Los Angeles Regional Office, expressed:
Andrew Left exploited the trust of his readers, leading them to trade based on false information to profit from subsequent price movements. We uncovered these alleged deceitful tactics, which resulted in Left and his firm making $20 million through unfair means, and we aim to hold them accountable for their actions.
Additionally, Left boasted about manipulating market behavior to colleagues, likening it to “taking candy from a baby,” as per the SEC.
Furthermore, Left faced accusations of exploiting retail investors who may be less informed and susceptible to market fluctuations driven by seasoned analysts.
The SEC argued that Citron Research falsely portrayed itself as an independent research firm that had never received compensation for publishing information on target companies, while Left had undisclosed financial partnerships with various hedge funds.
Citron Capital, presented as a successful hedge fund by Left, was merely a shell for managing his funds without external investors.
Views on Crypto
Left has been skeptical of cryptocurrency for some time and became more vocal about it in 2022, describing it as a “fraud” during a conference organized that year.
Despite his critical stance on cryptocurrencies, Left never revealed if he had investments in them.
During the same event, Left was questioned about the DOJ investigating short selling by hedge funds and research firms, including Citron, to which he responded:
Hopefully, one day the DOJ will realize that the boogeyman of short sellers doesn’t actually exist.