Since the beginning of 2024, the GameStop stock has already surged by 68%, however, 60% of the gains have come after Gill posted on his social media platform.
By Bhushan Akolkar
Edited by Julia Sakovich
Updated
2 mins read
E*Trade, the online brokerage platform, has decided that it will be removing GameStop trader Keith Gill, popular as “Roaring Kitty”, from its platform over potential stock manipulation.
Last week, Gill returned to the social media platform X after two long years of Hiatus sending the stock price of GameStop Corp (NYSE: GME) soaring higher while buying a large volume of GME options on E*Trade. Some of the options calls expired last week allowing Roaring Kitty to book net profit.
E*Trade and its parent owner Morgan Stanley have expressed concerns that Gill can use his influence to pump GME for his benefits. They are also discussing whether the recent posts on X and Reddit could be part of his market manipulation strategy.
On the other hand, they are concerned that his removal could attract negative scrutiny, potentially prompting others to close their E*Trade accounts in support of Gill. The firms have not yet reached a decision and may opt to take no action, according to the WSJ report.
On May 13, Gill, a trader credited with significant influence during the 2021 meme stock rally and GameStop short squeeze, made cryptic posts on X for the first time in three years, causing a surge in meme stocks and meme coins.
However, weeks later, Gill himself posted on the social media platform driving further the frenzy among GameStop investors. Following Gill’s post, GME surged by over 19% in Sunday night trading. By the close of Monday, June 3, it had soared by 21% to $28, with an additional nearly 8.5% climb in after-hours trading, reaching $30.36.
Since the beginning of 2024, the GameStop stock has already surged by 68%, however, 60% of the gains have come after Gill posted on his social media platform.
Gill was himself a registered broker with Massachusetts Mutual Life Insurance and already held several securities-industry licenses. However, a spokesperson said that the Massachusetts Securities Division is also investigating Gill’s activities.
Sources familiar with the regulator’s actions informed the Journal that the Securities and Exchange Commission (SEC) is examining GameStop call options trades during the period of Gill’s X posts.
The report further stated that the SEC has internally deliberated whether these options trades might constitute manipulation, although it remains unclear if Gill is under direct investigation in this regard.
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Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
