The US regulators wanted to ask “DeepF*ckingValue” some court questions regarding his GameStop pump posts.
US regulators have subpoenaed one of the traders that filed Reddit’s r/WallStreetBets subreddit to pump video game store Gamestop’s stock from the previous month.
The Boston Globe said that Massachusetts regulators on Monday had subpoenaed Keith Gill, who posted videos on YouTube about the pump under the name “Roaring Kitty” and Reddit under “DeepF*ckingValue.”
Massachusetts securities regulators investigate whether the GameStop stock boom violated securities regulations and whether people like Gill were licensed to provide financial advice.
Massachusetts’ securities regulators are now investigating whether the GameStop stock boom violated securities regulations and if people like Gill were licensed to provide financial advice.
The subreddit records Gill as making as much as $48 million from the trade by the end of January.
According to the reports, Gill worked at MassMutual until last month, a large insurance company, where he practiced as a financial advisor and held the requisite licenses.
Regulators wanted to question Gill on whether he provided financial advice to millions of Redditors for fun or as a licensed financial advisor. The report added that Gill handed in his notice to MassMutual on January 21, the week before GameStop’s stock increased by almost tenfold, but he was still an employee the next week.
Under the US law, Gill should have told MassMutual that he was advising the world about GameStop stock – however, the firm stated that it didn’t know about his posts.
GameStop was one of Wall Street’s most shorted stocks. The video game store struggled to adapt to the digital era.
GameStop sells physical copies of video games at retail stores when stores are closed, and games can be bought online for a low price. Many game consoles and PCs no longer have disk drives.
r/WallStreetBets decided to bet against the hedge funds that had shorted GameStop stock by rallying the price. This could force hedge funds to buy up even more of the stock to maintain their positions. The gambit worked well for several hedge funds that almost went under.
However, the regulators are now going after Reddit‘s folk heroes.
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