TLDR
- Massachusetts securities regulator is investigating Keith Gill’s (aka “Roaring Kitty”) trading activities in GameStop stock
- Gill shared a screenshot showing he owns 5 million shares of GameStop worth $115.7 million, as well as 120,000 call options
- This caused GameStop’s stock to surge 21% on Monday, with a high of 75% gain intraday
- The investigation comes after Gill’s recent online activity reignited interest in GameStop’s meme stock frenzy
- E-Trade, Gill’s brokerage, is considering banning him over concerns of potential market manipulation
The saga surrounding Keith Gill, the online trader known as “Roaring Kitty,” and his involvement in the GameStop meme stock frenzy has taken a new turn.
The Massachusetts securities regulator has launched an investigation into Gill’s trading activities related to GameStop stock.
Gill, a resident of Brockton, Massachusetts, gained notoriety in 2021 when his bullish trades and online presence on platforms like Reddit and YouTube helped fuel a massive surge in GameStop’s stock price.
This event, dubbed the “meme stock frenzy,” saw GameStop’s shares skyrocket from around $20 to a peak of $483, driven by a wave of retail investors inspired by Gill’s posts.
The latest development in this saga was sparked by Gill’s recent online activity. On Sunday, he posted a screenshot on Reddit that appeared to show a substantial position in GameStop stock and options.
Kitty better be careful exposing such a short term position with so many enemies. Where would he get all the money… he’s got to sell the options soon. $gme
— Ross Gerber (@GerberKawasaki) June 4, 2024
The screenshot indicated that Gill might hold 5 million shares of GameStop worth $115.7 million, as well as 120,000 call options with a strike price of $20, expiring on June 21.
This revelation sent shockwaves through the market, causing GameStop’s stock to surge once again. On Monday, the company’s shares closed 21% higher, after reaching a high of 75% during intraday trading.
The surge was significant enough to catch the attention of regulators and raise concerns about potential market manipulation.
The Massachusetts Secretary of State’s Office, which serves as the state’s top securities regulator, confirmed that it is investigating Gill’s trading practices.
While the details of the investigation remain confidential, the regulator’s spokesperson stated that they are looking into Gill’s activities related to GameStop.
Adding to the complexity of the situation, Gill’s brokerage, E-Trade, owned by Morgan Stanley, is reportedly considering banning him from its platform.
According to a Wall Street Journal report, E-Trade is holding internal discussions over concerns about potential market manipulation stemming from Gill’s actions.
