Ken Griffin

In 2020, Illinois held a referendum on a constitutional amendment to adopt graduated income tax rates — replacing the flat 4.95% rate with higher rates for higher earners, as 32 other states do. Ken Griffin's average annual income from 2013 to 2018 was $1.7 billion. His peak year was 2018: $2.9 billion. If the amendment had passed, Griffin's annual Illinois tax bill would have risen by approximately $51 million per year — in peak years, over $80 million. Griffin spent $54 million — nearly $18 per vote cast against the measure — to defeat it. The amendment failed 53–47%. Less than two years later, Griffin announced Citadel was relocating its headquarters from Chicago to Miami. Florida has no personal income tax. The move saves Griffin tens of millions of dollars per year, in perpetuity. He cited "crime" and "hostile business climate." ProPublica noted the math.

• —Griffin's average annual income 2013–2018: $1.7 billion (fourth-highest in the nation). Peak year 2018: $2.9 billion.
• —Estimated annual tax increase if amendment passed: ~$51M/yr. In peak years: $80M+/yr.
• —$54 million spent through Coalition to Stop the Proposed Tax Hike Amendment. Total anti-amendment spending across five committees: nearly $63 million.
• —The amendment was defeated 53% to 47%. Griffin spent approximately $18 for every vote cast against it.
• —June 2022: Griffin announced Citadel relocating headquarters to Miami, Florida — no state income tax.
• —Projected annual savings from the move: tens of millions per year, indefinitely.
• —Griffin publicly stated low taxes were not the primary motivation. The financial math contradicts the stated motivation.

In the 2022 Illinois Republican gubernatorial primary, Griffin donated $55 million to Richard Irvin — a moderate Republican running against incumbent Democratic Gov. J.B. Pritzker. According to the Center for Media and Democracy, "Except for wealthy politicians who bankroll their own campaign, this is the largest amount ever given by a single donor to a U.S. candidate at any level." Irvin lost in the primary. Griffin spent $55 million on a single state-level primary race and received nothing for it. In total, Griffin spent over $60 million in outside political spending during the 2022 cycle — making him the third-largest individual political donor in the country. In 2024, he spent approximately $100 million, ranking fifth among individual donors nationally.

• —$55 million to Richard Irvin (R-IL), 2022 Republican gubernatorial primary — largest single-candidate donation by a non-self-funding donor in US history at the time.
• —Irvin lost in the primary to state Sen. Darren Bailey, backed by Richard Uihlein.
• —Total Griffin outside spending, 2022 cycle: $60M+. Third-largest individual donor in the country that cycle.
• —$30M to Senate Leadership Fund (four separate donations, 2024). $15M to Congressional Leadership Fund. Additional millions to state-level races.
• —Total 2024 outside spending: ~$100 million. Fifth-largest individual donor in the country.
• —No return on the $55M investment: Irvin lost; Pritzker won re-election.

In January 2021, retail traders coordinated to buy GameStop (GME) shares, driving the price from under $20 toward $500 — a short squeeze targeting Melvin Capital and other short sellers. Citadel LLC had invested $2 billion in Melvin Capital as Melvin's losses mounted. Simultaneously, Citadel Securities — Griffin's separate market-making firm — pays Robinhood hundreds of millions per year for "payment for order flow": the right to execute the trades Robinhood's users believe are free. On January 28, 2021, Robinhood restricted users from buying GameStop shares (while still permitting sales). The restriction halted the buying pressure that was squeezing Melvin. At a congressional hearing on February 18, 2021, Sen. Elizabeth Warren pressed Griffin on the structural conflict: Citadel Securities pays Robinhood; Citadel LLC is invested in the entity being squeezed; Robinhood restricted buying at the moment that mattered. Griffin denied any coordination. No evidence of coordination was produced. No charges were filed.

• —Citadel LLC invested $2 billion in Melvin Capital at the height of the GameStop short squeeze — Melvin was one of the primary short sellers of GME.
• —Citadel Securities is Robinhood's largest source of revenue via payment for order flow (PFOF) — paying hundreds of millions per year for the right to execute Robinhood user trades.
• —January 28, 2021: Robinhood restricted purchasing of GameStop shares for retail investors while permitting sales — halting the buying pressure. Institutional short sellers were not restricted.
• —The restriction benefited Melvin Capital (Citadel LLC investment); the restriction harmed retail buyers.
• —Feb. 18, 2021: Griffin testified before House Financial Services Committee. Denied coordination with Robinhood. Warren noted the structural conflict explicitly.
• —SEC reviewed and issued a market structure report. No charges filed against Citadel, Robinhood, or Melvin Capital for the trading restriction.
• —Verdict: no charges, no admission, no evidence of coordination. The structural conflict remains unresolved.

In September 2023, the SEC fined Citadel Securities $7 million for violating Regulation SHO — the SEC rules governing short selling, designed to prevent manipulative short-sale practices. Between 2015 and 2020, Citadel Securities mismarked millions of sell orders. The company attributed the violations to a "coding error" in its automated trading system. Citadel Securities settled without admitting or denying wrongdoing. The settlement included a cease-and-desist order and a censure. Five years. Millions of orders. A $7 million fine against a firm that executes approximately 27% of all US equity volume and generates billions in annual revenue. The fine represents a rounding error. No criminal referral. No admission of wrongdoing.

• —2015–2020: Citadel Securities mismarked millions of sell orders in violation of Regulation SHO.
• —SEC enforcement action filed September 2023; $7 million civil penalty.
• —Settlement terms: cease-and-desist order, censure, fine. No admission or denial of wrongdoing.
• —Citadel Securities attributed violations to a "coding error" in its automated trading system.
• —Citadel Securities executes ~27% of all US equity volume. The $7M fine is a small fraction of one day's revenue.
• —No criminal referral to DOJ. No executive charged. No structural remedy required.

The Consolidated Audit Trail (CAT) is the SEC's primary tool for reconstructing market events, investigating unusual trading, and identifying manipulation. In 2024, FINRA fined Citadel Securities $1 million for failing to timely and accurately report data for tens of billions of equity and option order events — covering the period from June 22, 2020 through August 28, 2024. Four years. Tens of billions of events. The largest market maker in the United States — executing more than a quarter of all American equity volume — submitted deficient data to the surveillance system designed to catch market manipulation, for four consecutive years. Fine: $1 million. Settled. No charges.

• —CAT reporting obligation began June 22, 2020. Violations ran through August 28, 2024 — four years.
• —Scope of deficient reporting: tens of billions of equity and option order events.
• —FINRA fine: $1 million. Settled without charges.
• —The CAT system is designed specifically so that regulators can reconstruct what happened in the market and identify manipulation. Deficient data from the largest market maker creates years of blind spots.
• —No criminal referral. No admission of wrongdoing. No structural remediation required beyond correcting reporting going forward.