Massachusetts Regulators Seek Testimony of GameStop Cheerleader ‘Roaring Kitty’ Over $48M Score
The GameStop saga shook big-shot wall street traders when it happened. U.S regulators are now trying to get some answers. To get them started, they're hoping to learn more from the man that might have started the channel behind the event.
Wall Street Blindsided By Keith Gill?
Known online as “Roaring Kitty,” Keith Gill is a former employee at Massachusetts-based insurance giant MassMutual. The investor is GameStop's biggest cheerleader, and regulators believe he could have been influential in driving others to buy GameStop.
In the aftermath of the event, regulators and law enforcement agencies are now moving to question some notable traders who profited from the debacle. Earlier this week, The Boston Globe reported that securities regulators in the state of Massachusetts had sent a letter inviting Keith Gill, a former insurance company worker, for questioning over his activities during the GameStop drama.
In what was a remarkable turn of events, the world watched on as GameStop, a struggling video game and electronics retailer, rebounded following the action of Reddit users, who banded together to spite a billion-dollar short seller.
Like many, Gill had made millions from his trading activities in GameStop, most likely selling off his shares when the stock began its slide. He reportedly shared on Reddit that he made $48 million from his GameStop positions, turning himself into a folk hero on the community platform in the process.
Now, regulators want answers. Amongst other things, they will be questioning whether Gill had shared his investment philosophy with others who he encouraged to purchase GameStop stock, or whether he had just helped to instigate stock inflation out of a hobby.
Regulators would question Gill for any securities violation and whether or not he has the authority to give investment advice, to begin with. Gill's hearing is scheduled for February 26.
Gill's former employers MassMutual, a company that recently committed $100 million into Bitcoin, said they were unaware of Gill’s activities. The firm claimed that he had resigned late last month, although he was technically still an employee when the GameStop saga unfolded.
Elon Musk Next?
While the GameStop saga has led to discussions about the investment world’s activities, it also appears to have led to investigations into notable people and their influence on several financial markets.
Over the past few weeks, Tesla CEO, Elon Musk, has been whipping the crypto market into a frenzy with memes and endorsements of Bitcoin and DOGE. The process culminated in Tesla purchasing $1.5 billion worth of the leading cryptocurrency and announcing that it would accept it as a means of payment.
Musk has been especially vocal about his support for Bitcoin and DOGE often to market excitement and surges in these asset’s prices. However, some have counseled caution.
Vítor Constâncio, a former Vice President at the European Central Bank, said on Twitter, that Musk’s social media activity could invite scrutiny from regulators.
“It was not disclosed when Tesla had made this investment. In December, Musk said that Tesla could buy bitcoin, and this was followed by many statements that he supported bitcoin. Bitcoin kept going up & Tesla investment has appreciated. The SEC will look into this.”