E-Trade intends to ban Roaring Kitty for GameStop manipulation

E-Trade is contemplating the complete prohibition of Roaring Kitty for its involvement in malpractices related to GameStop stocks, which resulted in a substantial 30% increase in shares. The brokerage, which is owned by Morgan Stanley, is contemplating this course of action in light of Gill’s recent substantial investment in GameStop shares and call options, which has prompted concerns regarding market manipulation.

The Wall Street Journal reports that Reddit user Keith Gill, who goes under the handle “DeepFuckingValue” online, revealed his significant holdings in GameStop through a screenshot he shared. His holdings included 5 million GameStop shares and 120,000 call options with a $20 strike price and an expiration date of June 21, as shown in the screenshot.

Additionally, the options were acquired at a cost of $5.68 each. This contributed to a 30% increase in the price of GameStop’s shares.

Morgan Stanley and its associates are now in a wait-and-watch mode regarding Gill’s account activities. There appear to be plans in place to close his account.

Recently, the surge in the meme stock trade has played a significant role in bringing Gill back into the spotlight. His involvement in the 2021 GameStop trade disaster facilitated the filing of multiple lawsuits.

Gill was accused of operating as an inexperienced trader during that period, despite his actual status as a seasoned player. He was employed by MassMutual in the fields of finance education and marketing.

The resurrection of meme stocks was attributed to Gill’s information released on Reddit. This led to the resurgence of meme stocks, attracting the attention of both regulators and finance bodies. Gill’s revealing information helped in pushing up GameStop’s stock by 30%, reaching the trade price of $27.58.

Roxanne Williams

Roxanne Williams has recently joined as a market reporter for CryptoNewsZ - the 24/7 crypto news site, where she produces recent stories, technical analysis and price updates on world's leading cryptocurrencies.

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