Renowned short-seller Citron Capital and its founder face SEC charges, potentially facing up to 370 years in prison.

Andrew Left, a well-known short-seller on Wall Street, faces up to 370 years in prison for alleged securities fraud. The U.S. Securities and Exchange Commission (SEC) and the Department of Justice accuse Left and his company, Citron Capital, of disseminating misleading information to illegally profit by $20 million. Left is charged with 17 counts of securities fraud and making false statements.

The SEC alleges that Left used social media to recommend 26 times that investors short or go long on 23 companies, only to reverse his positions for profit. The Department of Justice also accuses Left of making false statements regarding hedge fund relationships and forging documents.

Citron Capital is known for shorting companies with overvalued stocks or suspected financial fraud. It has shorted several Chinese stocks, including Evergrande Real Estate and Longtop Financial Technologies. In 2021, Citron Capital suffered a major setback in the GameStop short battle, and Left announced he would no longer issue short reports, shifting focus to long strategies.

Left's attorney has not yet responded. The investigations by the SEC and the Department of Justice are ongoing.