US regulators are investigating a famous meme stock investor known as Roaring Kitty.
The trading activities of Keith Gill, who has resurfaced after gaining a cult following online during the pandemic, are under scrutiny by the Massachusetts securities regulator.
Gill returned to online chat forum Reddit this week with a post showing that a £91m bet has been placed on embattled video games retailer Gamestop.
The post sent the stock’s value soaring in a move reminiscent of those seen in the meme stock craze of 2021.
The screenshot suggested that Gill could own 5 million shares, fueling investor confidence in the business.
Investigation: Keith Gill (pictured), who has reemerged after gaining a cult following during the pandemic, is under scrutiny by the Massachusetts securities regulator.
This followed his re-emergence on X, formerly known as Twitter, last month when he posted cryptic tweets after a two-year absence.
Gamestop shares have almost doubled in value in the last month, giving the group a market capitalization of £7bn.
Gill fueled a buying spree of Gamestop shares three years ago, when shares rose to $120 from as low as $3 in three months, before pulling back.
The episode inspired the 2023 film Dumb Money.
Critics fear Gill’s return could lead to a spiral of losses for retail investors.
Morgan Stanley’s e-commerce division is considering banning Gill from its platform, The Wall Street Journal reported.
The watchdog declined to give details.
