Hedge fund Two Sigma in settlement talks with SEC: WSJ
- July 19, 2025
- Posted by: Web workers
- Category: Finance
(Reuters) — Hedge fund Two Sigma is likely to have to pay as much as $100 million to resolve a U.S. Securities and Exchange Commission probe into a trading scandal at the firm, The Wall Street Journal reported Thursday.
The U.S. hedge fund is likely to be held accountable for how it oversaw an ex-employee at the center of the misconduct, which led to hundreds of millions of dollars in losses, the report said, citing people familiar with the matter.
The researcher allegedly modified trading models without authorization.
The SEC did not immediately respond to a Reuters request for comment. Two Sigma’s spokesperson declined to comment on the matter.
Two Sigma co-founders John Overdeck and David Siegel decided to step down as CEOs in August.
The hedge fund, with $60 billion in assets under management, disclosed in a regulatory filing last year that a rift between its top managers poses governance challenges and a material risk for the firm.
Mr. Overdeck and Mr. Siegel, who founded Two Sigma in 2001, are to continue as co-chairmen.
