Massachusetts Securities Regulator Investigates Roaring Kitty Over Trading Practices As GameStop Meme Coins Slump

Updated: 05 June 2024

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The Massachusetts Securities Regulator is investigating Keith Gill, an investor known as ”Roaring Kitty,” in connection with trading activities related to GameStop (GME).

That’s according to a report by NBC 10 Boston, which said the office of Massachusetts Secretary of State Bill Galvin, who is the state’s top securities regulator, confirmed on Tuesday that it is investigating Gill, who is a resident of Brockton.

Separately, the Wall Street Journal reported that Morgan Stanley’s E*Trade is considering kicking Gill off its platform amid concerns over possible stock manipulation. Gill had posted on Reddit a picture of his huge holdings in GameStop (GME) stock, triggering a rally in the company’s shares and multiple meme coins linked to the company.

The WSJ also said that the Securities and Exchange Commission (SEC) is investigating options trading in GameStop. A spokesperson for the agency declined to confirm or comment on that, Reuters reported.

GameStop-related meme coins slumped. GameStop (GSTOP) is down 30% in the last 24 hours, GME plunged 23%, and Roaring Kitty (KITTY) slumped 8%.

Keith Gill And His Influence On Meme Stocks

Gill came into the spotlight in 2021 during the meme stock frenzy, and was a pivotal player in the short squeeze on GameStop. He remained notably quiet for three years before returning in May with a flurry of memes on X (Twitter).

pic.twitter.com/jPVR41YSwD

— Roaring Kitty (@TheRoaringKitty) May 17, 2024

His return has seen GameStop shares gaining by 60% in the last month, while AMC is up by 45%.

Earlier this week, Gill posted a screenshot on Reddit showing he has invested $116 million in GME and 120,000 GME June 21 call options worth $65.7 million. The screenshot saw GME gaining by 21%.

Keith Gill Enjoys Some Support From Social Media

Despite the investigation into Gill’s trading activities, he is garnering some support on social media platforms. According to one user on X, regulators were biased in investigating Keith Gill while ignoring rampant complaints of stock manipulation by some members of the US Congress.

Pretty sure @TheRoaringKitty understands the securities law thoroughly.

He actually fought for investors at lex shares which is litigation finance firm….

I did my research 👍🏽

Shorts are fuckn done $AMC $GME pic.twitter.com/rDBaMSxXTG

— Travis (@trvsrdrgz2) June 4, 2024

Another report cited a trader who said that E*Trade considering a ban on Gill was absurd. Another user mentioned that Gill is very knowledgeable on securities laws.