According to Golden Finance, hedge fund giant Two Sigma may pay up to $100 million to settle an investigation by the U.S. Securities and Exchange Commission into a trading scandal at the firm.

Sources say the New York-based company could be blamed for the misconduct of a former employee. The researcher allegedly made unauthorized adjustments to trading models, resulting in hundreds of millions of dollars in unexplained losses and gains.

Sources say Two Sigma is still negotiating with regulators, and the outcome could result in a lower payment. The final settlement will need to be approved by the five-member commission. A company spokesperson and an SEC spokesperson declined to comment.