Investors' cash meant for pre-IPO OpenAI and SpaceX shares went to strip clubs and Amazon, SEC alleges
kyliebytes · x · 2026-10-01
The SEC announced two separate cases charging private fund advisers with misappropriating millions in investor assets. Investors believed they were buying pre-IPO shares in coveted startups like OpenAI and SpaceX, but the funds were allegedly spent on strip clubs, Bloomingdale's, and Amazon shopping. The case exposes the opacity of the booming private pre-IPO shares market.
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