The whole GameStop stock story came crashing to a burning halt a few weeks ago, but the saga is not over. Yesterday, Reddit user Keith "DeepF*ckingValue" Gill appeared before US Congress to testify on the grounds that he was not manipulating the stock market to earn the millions he achieved.
In front of the U.S. House Committee on Financial Services, Gill claimed to be a hobbyist investor and not a hedge fund manager or a professional investment firm. He did however, state that he offers "investment advice for fees or commissions," and that any previous posts he made regarding the GameStop stock were personal, as IGN reports. As for the financials behind Gill's success, he was claimed to make over $7.8 million from the stock.
Gill has also been hit with a class-action lawsuit that was filed to a federal court in Massachusetts, US on Tuesday. The lawsuit claims Gill to have been a "licensed securities professional who manipulated the market to profit himself," as Bloomberg reports.
The lawsuit reported on by Bloomberg, states, "Gill's deceitful and manipulative conduct not only violated numerous industry regulations and rules, but also various securities laws by undermining the integrity of the market for GameStop shares. He caused enormous losses not only to those who bought option contracts, but also to those who fell for Gill's act and bought GameStop stock during the market frenzy at greatly inflated prices."
As part of the testimony to Congress, the co-founder of Robinhood (a day-trading platform that limited GameStop trades due to financial issues it faced) Vlad Tenev said that the whole situation was "unacceptable to us," and that "we are doing everything we can to make sure this won't happen again," as the BBC reports.
Tenev also denied that Robinhood was working against anyone when it limited GameStop trades, even going as far as saying, "I'm sorry for what happened. I apologise."
We will continue to cover the testimony as the trial progresses.
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