An anonymous reader quotes a report from CNET: GameStop’s stock price shot through the roof in late January thanks to traders on Reddit. Now at least two government agencies are reportedly investigating why it happened as well as what roles Reddit and trading app Robinhood played in the stock market craziness. The Department of Justice’s fraud section and the San Francisco US attorney’s office are seeking information about the trading frenzy from social media companies and trading platforms, according to a report Thursday from The Wall Street Journal. Prosecutors have reportedly subpoenaed information from Robinhood, where many of the trades happened. According to the Journal, Reddit is under investigation by the Commodity Futures Trading Commission (CFTC) as well for its part in possible misconduct with traders at the subreddit r/WallStreetBets who spurred the buying spree of GameStop along with other “meme” stocks. Congress is already planning a hearing on Feb. 18 about the events. Rep. Maxine Waters, a Democrat from California, told Cheddar on Feb. 3 that her committee would hear from Reddit, GameStop, Robinhood and others involved.
Read more of this story at Slashdot.
Source:
https://yro.slashdot.org/story/21/02/11/2231231/government-agencies-begin-investigating-robinhood-reddit-over-gamestop-stock?utm_source=rss1.0mainlinkanon&utm_medium=feed