US Prosecutors Launch Criminal Probe into GameStop Stock Manipulation

The federal prosecutors and regulators in the United States have launched an investigation into the potential market manipulation or other types of criminal misconduct that caused the meteoric rise in stocks of several firms, such as video-game retailer GameStop and theatre chain AMC, in January.

The fraud section of the Department of Justice and the San Francisco U.S. attorney’s office are seeking information from the brokers and social media firms that played a central role during the trading activity.

Prosecutors already issued a subpoena to ask for details from brokers such as Robinhood Markets Inc.

In addition to the Justice Department’s inquiry, the Commodity Futures Trading Commission has launched a preliminary investigation to determine whether misconduct occurred during the trading frenzy. It also aims to know whether Robinhood and other brokers that temporarily suspended or restricted GME trading were in compliance with the regulations of federal agencies.

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