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The Department of Justice is reportedly the latest entity to raise the stakes regarding last month's crazy markets.
Citing unnamed sources, the Wall Street Journal reported on Thursday that the DoJ's fraud division and the San Francisco district attorney's office had launched probes into the brokers (read: Robinhood) and social-media platforms (read: Reddit) who were at the center of wild bull markets on stocks like GameStop and AMC weeks ago.
Several agencies have set up task forces to investigate market manipulation. The Securities and Exchange Commission released a cryptic statement to that effect as GME stocks were still convulsing, while just this morning the SEC shut down all trading in SpectraScience stock, a firm that had become the subject to meme-fied trading despite being functionally dead for several years.
WSJ reports that the Commodity Futures Trading Commission has begun a similar inquiry into the silver market, which increased when various stocks were suspended and interest on the internet dispersed.
In contrast, the DoJ prosecutes criminal cases, which carry the prospect of prison time.
Congress is likewise getting involved in the matter, with the CEOs of Robinhood, investment manager Melvin Capital and hedge fund Citadel reportedly preparing to testify before a House hearing scheduled for next Thursday.
