Ken Griffin has accused the massive hedge fund Citadel Investments of contributing to the ‘Reddit Rally’, calling it an ‘insane conspiracy theory’.
The Wall Street billionaire on Friday rejected his testimony at Capitol Hill on Thursday about the surprise rise in shares of GameStop and AMC Entertainment on Friday on the idea that he was playing both sides of the chaotic short press.
Some retail investors fueled by Reddit have accused its hedge fund of investing $ 2 billion in Melvin Capital – a sincere hedge fund whose betting on GameStop shares was attacked – even though its security firm was tasked with selling many of the GameStop shares. conduct transactions on Robinhood that hampered the crippled hedge fund.
There have been particular rumors that Griffin’s fund was involved in Robinhood’s decision to limit users’ ability to buy GameStop shares, and that he conspired to block retail investors around Melvin and his founder, Citadel alum Gabe Plotkin. to protect.
“If I had to run my business to the possibility that an insane conspiracy theory would emerge at any point,” Griffin told CNBC, “I would have no business.”
Asked directly if his investment in Melvin at the height of the short press might have been a mistake, Griffin replied succinctly, “No, I think Gabe Plotkin is one of the best investors of his generation.”
As for the powerful financiers’ thoughts on the red-hot market for Bitcoin, Griffin said he has nothing.
“I just don’t spend much time on cryptocurrencies,” Griffin said. ‘I do not see the economic underpinnings of cryptocurrencies. I understand how to value a stock … I do not know how to think of what a digital sign is effectively. ‘
Bitcoin reached another all-day high earlier Friday, raising its overall market value above the $ 1 trillion mark, after Tesla chief Elon Musk called the cryptocurrency ‘less dumb’ than cash.