The US Department of Justice is now giving the developments around GameStop, Robinhood and Reddit a criminal law dimension.
The “Department of Justice” (DoJ) is now also taking on the wild developments on the financial markets in recent weeks
As the Wall Street Journal reports , citing internal sources , the fraud department, i.e. the department for fraud and market manipulation, of the US Department of Justice, together with the prosecutor of San Francisco, is initiating an investigation into the trading platform Robinhood and the social network Bitcoin Pro, which are im The focus of the affair over the shares of the video game retailer GameStop were.
American regulators are already looking into the allegations of possible market manipulation, the US Securities and Exchange Commission had a corresponding statement a few days ago issued , in which it announced its own investigation.
Since the GameStop affair, in which small investors encouraged themselves to jointly buy GME shares on the Reddit social network, has now expanded to include cryptocurrencies and other securities and is still being carried out in some cases, the SEC itself now has the trade of the SpectraScience stock stopped as it was the next “target” of retail investors.
According to the Wall Street Journal, the Commodity Futures Trading Commission (CFTC), the supervisory authority for derivatives trading, also wants to examine whether the Reddit traders may have influenced the silver market in a targeted manner after trading in some stocks was suspended.
In contrast to the CFTC and SEC authorities, however, the Ministry of Justice’s investigations are criminally relevant, which means that the “perpetrators” may even face imprisonment
American politics is also dealing with the affair, which is why the directors of the trading platform Robinhood, the asset management company Melvin Capital and the hedge fund Citadel, all of whom played a major role in the events, will have to testify to a parliamentary committee next Thursday .