Feds reportedly probing traders behind GameStop frenzy
Donna Miller, 09 May 2021
Federal regulation enforcement authorities are investigating whether or not market manipulation or different monetary felony exercise fueled the meteoric rise of shares corresponding to GameStop and AMC Leisure final month, a report mentioned Thursday.
Investigators from the Justice Division’s fraud part and the US Lawyer’s workplace in San Francisco have requested data from stockbrokers and social media firms that helped spark the buying and selling hysteria that lasted for about two weeks on the finish of January, the Wall Avenue Journal reported, citing unnamed sources.
GameStop, a historically low-cost inventory, shot up in value after particular person day traders, spurred partly by data shared on the social media website Reddit, began shopping for up shares at a lighting-quick price.
Federal investigators have now subpoenaed data from the buying and selling app Robinhood, the place a lot of the person traders behind GameStop’s rise purchased shares within the firm, the Journal reported.
