Online brokerage platform E*Trade reportedly considering removing GameStop stock trader
Online brokerage platform E*Trade is reportedly considering removing GameStop (GME) stock trader Keith Gill, known as “Roaring Kitty,” from its platform over concerns of potential stock manipulation.
Before Gilles suddenly returned to Some of those items expired that week and would likely net him a profit, the Wall Street Journal reported June 3, citing people familiar with the matter.
The company and its owner, Morgan Stanley, are concerned that Gill could use his influence to pump GME to his advantage and are discussing whether recent posts on X and Reddit could be considered manipulation, the sources said.
They also fear that removing it will attract negative attention and that others may close their e-commerce accounts in solidarity with Jill. The newspaper reports that no decision has yet been made and the companies could decide to do nothing.
On May 13, Gill — a trader cited as having a major influence on the 2021 meme stock rally and GameStop short squeeze — began surreptitiously posting about X for the first time in three years, sending the shares skyrocketing Memes and Meme Coins.
A few weeks later, on June 2, Gill posted to Reddit for the first time since 2021 to share a screenshot that appeared to show he owned $181.4 million in stock and call options of GME, betting that GME would cost at least $20 per share on June 21. .
Shares of GME rose more than 19% late Sunday following Jill’s participation. On Monday, June 3, it closed up 21% at $28 and rose nearly 8.5% after hours to $30.36. According to Google Finance.
GME is up nearly 68% this year and has gained more than 60% since Gill returned to X.
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Gill then posted again on Reddit on June 3 to show that he apparently received a $33.6 million profit on his 5 million shares of GME and a $51.8 million profit on his options.
Gill reportedly held several licenses in the securities industry and was a registered broker with the Massachusetts Mutual Life Insurance Company. A spokesperson for the newspaper said the Massachusetts Securities Division was investigating Gill’s activities.
People familiar with the regulator’s efforts told the Journal that the SEC was also reviewing GameStop’s call options trades at the time of Gill X’s publications.
The SEC discussed internally whether these options trades could be considered fraud, but it was unclear whether it was investigating Gill specifically, the report added.
An SEC spokesperson told Cointelegraph that it does not comment on the presence or absence of a potential investigation.
E*Trade, Morgan Stanley and the Massachusetts Securities Division did not immediately respond to Cointelegraph’s requests for comment.
Gill did not immediately respond to the message sent via Reddit.
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Update (June 4, 3:10 a.m. UTC): This article has been updated to add a comment from the Securities and Exchange Commission.
