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Ken Griffin
Founder and CEO; Citadel LLC
Billionaire hedge fund manager; Citadel and Citadel Securities; central figure in GameStop/meme stock controversy; largest individual Republican donor
Overview
Kenneth Cordele Griffin is the founder and CEO of Citadel LLC; one of the world's largest hedge funds ($62 billion AUM); and Citadel Securities; one of the largest market makers handling roughly 40% of all U.S. retail stock trading volume. Griffin became a central figure in the January 2021 GameStop/meme stock saga when retail investors on Reddit's WallStreetBets drove GameStop stock from $20 to $483; causing massive losses for short sellers including Melvin Capital; which had received a $2.75 billion emergency investment from Citadel. When Robinhood (which routes a majority of its orders to Citadel Securities through payment for order flow) restricted buying of GameStop and other meme stocks on January 28, 2021; millions of retail investors were trapped in positions while institutional players could continue trading. Congressional investigations found that Citadel Securities paid Robinhood $689 million in 2020 for order flow. Griffin testified before Congress that he learned about Robinhood's decision to restrict trading the morning it happened; but communications later revealed more extensive contact. Griffin is also the largest individual political donor to the Republican Party; spending over $100 million in the 2022 midterm cycle alone.
Key Affiliations
Controversies & Concerns
Citadel Securities handles approximately 40% of all U.S. retail stock orders; giving it extraordinary visibility into and influence over retail trading activity
Citadel provided $2.75 billion emergency investment to Melvin Capital during the GameStop short squeeze; Robinhood (which routes orders to Citadel Securities) then restricted retail buying of GameStop shares
Citadel Securities paid Robinhood $689 million in 2020 for payment for order flow (PFOF); raising questions about conflicts of interest when Robinhood restricted meme stock trading
Griffin testified before Congress that he learned of Robinhood's trading restrictions the morning they happened; subsequent communications revealed more extensive contact between the firms
Largest individual Republican political donor; spent $100+ million in 2022 midterm cycle; $68 million to DeSantis and other Florida campaigns
Citadel has faced SEC investigations and penalties; including $115 million in 2017 for misleading investors about the performance of its Citadel Connect dark pool
Payment for order flow model means Citadel Securities profits from the gap between bid and ask prices on retail trades; critics argue this creates a structural advantage over retail investors
Related Investigations (2)
Known Associates & Connections
Vlad Tenev
Co-founder and CEO of Robinhood; Citadel Securities is Robinhood's largest customer for payment for order flow
Ben Bernanke
Former Federal Reserve Chair; hired as senior advisor to Citadel in 2015
Sources & Documentation
3 documented sources from official records, investigations, and reports
Personal Information
- Born
- October 15, 1968
- Birthplace
- Daytona Beach, Florida, USA
Education
- •Harvard University; B.A. Economics 1989
Key Timeline
October 15, 1968
Born in Daytona Beach, Florida
1990
Founded Citadel from his Harvard dorm room with $4.6 million
2002
Founded Citadel Securities; begins market-making operations
January 25-27, 2021
Citadel and Point72 provide $2.75 billion emergency investment to Melvin Capital during GameStop short squeeze
January 28, 2021
Robinhood restricts buying of GameStop and other meme stocks; sparking outrage from millions of retail investors
February 18, 2021
Griffin testifies before House Financial Services Committee on GameStop trading restrictions
2022
Spends $100+ million on Republican candidates; becomes largest individual GOP donor
2022
Moves Citadel headquarters from Chicago to Miami