Online brokerage platform E*Trade is reportedly considering removing “Roaring Kitty,” also known as Keith Gill, from its platform. The move stems from concerns about possible stock manipulation surrounding GameStop (GME). According to a report in the Wall Street Journal, Gill’s recent activity on X and Reddit has raised alarm bells.

Prior to his return to X last month, Gill purchased a large number of GME options on E*Trade. Those options expired that week and likely netted him a profit. Morgan Stanley and E*Trade are concerned that Gill may have used his influence to artificially inflate GME stock for personal gain. They are currently discussing whether Gill's recent posts on X and Reddit can be classified as market manipulation.

Impact of Gill’s social media posts
Gill played an important role in the 2021 meme stock carnival. He posted on X again on May 13, three years later. His mysterious post led to the rise of meme stocks and meme coins.

On June 2, Gill posted on Reddit and shared a screenshot showing that he held $181.4 million worth of GME shares and call options. He bet that GME stock would reach at least $20 per share by June 21.

A June 2 Reddit post by Gill, who goes by the handle DeepFuckingValue. Source: Reddit

Following Gill’s post, GME rose 19% in Sunday evening trading. On Monday, June 3, GME closed up 21% to $28, and rose another 8.5% to $30.36 in after-hours trading, according to Google Finance.

Although GME closed below $40 on June 3, it still beat the closing price of $23.14 on Friday, May 31. Source: Google Finance

Keith Gill faces regulatory investigation
The Massachusetts Securities Department and the U.S. Securities and Exchange Commission (SEC) are investigating Gill’s activities. A spokesperson for the Massachusetts Securities Department confirmed the investigation. Meanwhile, the SEC is reviewing Gill’s options trading at the time of X’s post.

Gill reportedly holds several securities industry licenses and was a registered broker with Massachusetts Mutual Life Insurance. His influence on the market remains a focus of attention for regulators and financial institutions.

E*Trade faces tough choices
E*Trade and Morgan Stanley faced a difficult decision. Removing Gill could draw negative attention and possibly cause other users to close their accounts in a show of solidarity. However, keeping him on the platform risked continued market manipulation.

No decision has been made yet, and the companies can also choose to take no action. Discussions are ongoing, and the companies are weighing the potential consequences of their decision, according to The Wall Street Journal.

Keith Gill's future at E*Trade remains uncertain.
Gill has not yet responded to inquiries about the situation. E*Trade, Morgan Stanley and the Massachusetts Securities Department did not immediately provide comment.