According to Odaily Planet Daily, Andrew Left, founder of short-selling financial research firm Citron Research, has been charged with securities fraud for allegedly making $16 million in profits through "bait trade" stock recommendations that misled retail investors.

The SEC said in a statement on July 26 that Left is a strong cryptocurrency skeptic who uses social media and television shows to make recommendations on stocks in which he holds short or long positions. This creates the illusion that his public comments on these stocks are consistent with his company's trading activities, even though in many cases he "operates the other way."

“This fraud deceived investors and allowed Left to use his Citron Research reports and tweets as a catalyst for short-term profits,” the SEC added.

Earlier news, Andrew Left and Citron Capital were charged by the U.S. Securities and Exchange Commission (SEC) and the Department of Justice (DOJ) for suspected millions of dollars of fraud. It is reported that Citron Research is one of the most famous short sellers of GameStop and announced in June this year that it would no longer short GameStop.