Ken Griffin denied allegations that his massive hedge fund Citadel Investments was involved to spoil the “Reddit Rally” Let’s call it a “crazy conspiracy theory”.
Fresh from his Thursday testimony on Capitol Hill After the surprise surge in shares of GameStop and AMC Entertainment last month, the Wall Street billionaire pushed back on Friday to the idea that he was playing both sides of the chaotic short squeeze.
Some Reddit-run retail investors have accused its hedge fund of investing $ 2 billion in Melvin Capital – a high-profile hedge fund whose betting on GameStop stocks they attacked – despite its investment firm being tasked with running many GameStop businesses on Robinhood who squeezed the crippled hedge fund.
In particular, rumors have led to the fact that Griffin’s fund was involved in Robinhood’s decision to restrict users from buying GameStop stock and that he had plotted to block private investors in order to give Melvin and its founder Citadel alum Gabe Plotkin protect.
“If I had to run my business in such a way that some crazy conspiracy theory pops up at all times,” says Griffin said CNBC“I have no business.”
When asked directly whether his investment in Melvin at the height of the brief press could have been a mistake, Griffin replied curtly, “No, I think Gabe Plotkin is one of the best investors of his generation.”
Regarding the thoughts of the powerful financiers about the glowing market for bitcoin, Griffin said he had none.
“I just don’t spend a lot of time thinking about cryptocurrencies,” Griffin said. “I don’t see any economic basis for cryptocurrencies. I understand how to value a stock … I don’t know how to think about what a digital token is effectively.”
Bitcoin hit an all-time high again on Friday, increasing its total market value above the $ 1 trillion mark, according to Tesla boss Elon Musk called the cryptocurrency “less stupid” as cash.
