E*Trade Contemplates Banning GameStop Trader 'Roaring Kitty' Amid Stock Manipulation Concerns
Summary:
E*trade, the online brokerage platform, is considering banning renowned GameStop meme stock trader, Keith Gill aka "Roaring Kitty", due to potential stock manipulation concerns. This decision is based on Gill's past activities where his cryptic posts on trading platforms led to significant surges in stock prices. However, there are concerns about negative publicity and loss of business over this decision. Investigations by the Massachusetts Securities Division and the Securities and Exchange Commission (SEC) into Gill's activities are ongoing.
E*Trade, an online brokerage platform, is allegedly evaluating the possibility of banning Keith Gill, the famed GameStop (GME) meme stock trader also known as "Roaring Kitty," due to suspicions of potential stock manipulation. According to The Wall Street Journal's report on June 3, Gill prior to his reemergence on X platform last month, which led to a spike in GameStop's shares, bought considerable GME options on E*Trade. Many of these, which likely profited Gill, expired that same week. Currently, Morgan Stanley, E*Trade's parent company, is debating if Gill's recent postings on X and Reddit platforms classify as manipulation. They fear that Gill could exploit his influence to boost GME for personal gain. However, expelling Gill might attract negative publicity and incite others to sever their E*Trade accounts as an act of unity with Gill. Gill, a trader recognized as a principal force behind 2021's meme stock rally and GameStop short squeeze, started cryptically posting on X on May 13 after a three-year hiatus. This triggered a surge in meme stocks and meme coins. Furthermore, on June 2, Gill returned to Reddit for the first time since 2021, uploading a screenshot that appeared to show him holding $181.4 million in GME stock and call options, wagering that GME will reach at least $20 a share by June 21. Following Gill's post, GME shares soared by over 19% in Sunday night trading. The report also stated that Gill holds multiple securities industry licenses and previously served as a registered broker with Massachusetts Mutual Life Insurance. It was reported that the Massachusetts Securities Division is currently investigating Gill's activities. Sources involved with regulatory efforts also mentioned that the Securities and Exchange Commission (SEC) is investigating GameStop call options trades around when Gill posted on X. Despite these investigations, it remains uncertain whether Gill is specifically being probed. E*Trade, Morgan Stanley, the SEC, and the Massachusetts Securities Division didn't comment immediately on the investigation nor Gill in response to Cointelegraph's request.
Published At
6/4/2024 5:55:16 AM
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