YEREVAN (CoinChapter.com) — Online brokerage platform E*Trade is reportedly considering removing Keith Gill, also known as “Roaring Kitty,” from its platform. This move stems from concerns over potential stock manipulation involving GameStop (GME). According to The Wall Street Journal, Gill’s recent activities on X and Reddit have raised alarms.
Before his return to X last month, Gill purchased a significant amount of GME options on ETrade. These options expired that week, likely earning him a profit. Morgan Stanley and E*Trade are worried that Gill might leverage his influence to inflate GME stock for personal gain artificially. They are currently debating whether his recent posts on X and Reddit could be classified as market manipulation.
The Impact of Gill’s Social Media Posts
Gill, who played a big role in the 2021 meme stock rally. He posted on X again on May 13 after being away for three years. His mysterious posts caused meme stocks and meme coins to rise.
On June 2, Gill posted on Reddit, sharing a screenshot that showed he holds $181.4 million worth of GME stock and call options. He is betting that GME would reach at least $20 per share by June 21.
Gill’s June 2 Reddit post under his DeepFuckingValue account. Source: Reddit
GME rose over 19% in Sunday night trading after Gill’s post. On Monday, June 3, it closed up 21% at $28 and climbed another 8.5% in after-hours trading to $30.36, according to Google Finance.
While GME closed below its $40 opening on June 3, it still beat its Friday, May 31 close of $23.14. Source: Google Finance
Keith Gill Faces Regulatory Investigation
The Massachusetts Securities Division and the Securities and Exchange Commission (SEC) are investigating Gill’s activities. A spokesperson from the Massachusetts Securities Division confirmed the investigation. Meanwhile, the SEC reviews options trades around the time of Gill’s X posts.
Gill reportedly holds several securities-industry licenses and was a registered broker with Massachusetts Mutual Life Insurance. His influence on the market continues to be a point of concern for regulators and financial institutions.
E*Trade’s Tough Choice
E*Trade and Morgan Stanley face a difficult decision. Removing Gill could lead to negative attention and potential backlash from other users who might close their accounts in solidarity. However, allowing him to remain on the platform poses risks of continued market manipulation.
No decision has been made yet, and the firms could choose to take no action. The Wall Street Journal reports that discussions are ongoing, with both companies weighing the potential consequences of their decision.
The future of Keith Gill on ETrade remains uncertain. Gill has yet to respond to inquiries regarding the situation. E*Trade, Morgan Stanley, and the Massachusetts Securities Division have also not provided immediate comments.
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