E*Trade Considers Removing “Roaring Kitty” Keith Gill from Its Platform

Online brokerage platform E*Trade is reportedly considering removing Keith Gill, also known as “Roaring Kitty,” from its platform.

Online brokerage platform E*Trade is reportedly mulling over the possibility of removing Keith Gill, also known as “Roaring Kitty,” from its platform. This decision comes amid concerns over potential stock manipulation involving GameStop (GME). According to The Wall Street Journal, Gill's recent activities on X and Reddit have raised red flags.

Before his return to X last month, Gill had purchased a large amount of GME options on ETrade. These options expired later that week, and Gill is likely to have made a significant profit from them. Now, both Morgan Stanley and E*Trade are concerned that Gill might be using his influence to artificially inflate GME stock for his personal gain. They are debating whether his recent posts on X and Reddit could be classified as market manipulation.

The Impact of Gill’s Social Media Posts Explored

Gill, who played a large role in the 2021 meme stock rally, made his return to X on May 13 after being absent for three years. His cryptic posts have had a noticeable impact on meme stocks and coins.

On June 2, Gill took to Reddit, sharing a screenshot that showed him holding $181.4 million in GME stock and call options. He is betting that GME will reach at least $20 per share by June 21.

Following Gill's post on Sunday night, GME rose over 19% in trading. On Monday, June 3, it closed up 21% at $28 and climbed another 8.5% in after-hours trading to reach $30.36, according to Google Finance.

Regulatory Authorities Investigate Keith Gill's Activities

The Massachusetts Securities Division and the Securities and Exchange Commission (SEC) are both reportedly looking into Gill's activities. A spokesperson from the Massachusetts Securities Division confirmed the investigation, while the SEC is said to be reviewing options trades around the time of Gill's X posts.

Gill is said to hold several securities-industry licenses and was once a registered broker with Massachusetts Mutual Life Insurance. His influence over the market continues to be a point of concern for regulators and financial institutions.

E*Trade Faces a Tough Decision

Both E*Trade and Morgan Stanley are facing a difficult decision. Removing Gill could lead to negative attention and potential backlash from other users, who might close their accounts in solidarity. However, allowing him to remain on the platform also poses the risk of continued market manipulation.

No decision has been made as of yet, and the firms could choose to take no action. The discussions are still ongoing, with both companies considering the potential consequences of their decision, The Wall Street Journal reports.

The future of Keith Gill on ETrade remains to be seen. Gill has not yet responded to inquiries about the situation, while E*Trade, Morgan Stanley, and the Massachusetts Securities Division did not immediately provide comment.