Hedge Funds Under SEC Spotlight in Expanding WhatsApp Crackdown

The Securities and Exchange Commission is expanding its crackdown on finance firms’ use of private messaging apps like Meta Platforms Inc.'s WhatsApp, underscoring questions about what records hedge funds are required to keep.

The SEC earlier this month fined Senvest Management LLC, a New York hedge fund, $6.5 million. It was the first time the agency has brought a case as part of its messaging app enforcement against a standalone investment adviser.

The move comes amid similar crackdowns against banks — and even the SEC’s own employees last week, after the agency banned third-party messaging apps from work mobile ...