Unsurprisingly, CYNK Technology Corp (OTCMKTS:CYNK) has now caught the attention of the Securities and Exchange Commission. The stock climbed from just pennies per share up by tens of thousands of a percent to pass $20 a share. Regulators revealed today via an official filing that they decided to halt trading on the company’s stock “because of concerns regarding the accuracy and adequacy of information in the marketplace and potentially manipulative transactions in Cynk’s common stock.”
This morning the SEC said it has halted shares of CYNK Technology Corp (OTCMKTS:CYNK) from 9:30 a.m. July 11 through 11:59 p.m. EDT on July 24. Regulators said they suspended trading on the company’s stock because they believe it’s in the “public interest and the protection of investors.” The OTC Bulletin board initially stated that the Financial Industry Regulatory Authority (FINRA) ordered the suspension, although that was later changes to reflect an order from the SEC. There has been no official report of an investigation, but it seems likely that regulators will probe the recent climb in the company’s stock price.
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CYNK Technology Corp (OTCMKTS:CYNK) is incorporated in Nevada but has a business address in Belize City, Belize. The company operates the website www.introbiz.com, which it bills as a social network that’s aimed to connect people with celebrities. Numerous media outlets have attempted to contact the company and its management but have been unable to reach anyone. One of the phone numbers on CYNK’s records is apparently disconnected.
CYNK Technology’s history
CYNK Technology Corp (OTCMKTS:CYNK) doesn’t appear to have many, if any, members signed up for its social network. The company has posted losses and even stopped reporting its financials to the SEC earlier this year. Exactly a year ago, the company’s stock spiked again, that time ahead of an announcement about a 75 to 1 stock split. It also came crashing down again within days.
Regulators have undoubtedly seen too many warnings signs about this company, and indeed there has been no shortage of articles about why the trades of its stock seem suspicious. Some are questioning whether this is a pump and dump scheme, but as of yet, we just don’t know the answer to that question. That’s up to regulators to decide after they investigate.
Reuters adds that there is more details from FINRA, noting:
On Finra’s website, it was indicated that the shares were halted under a category labeled “U3-Extraordinary Event Halt.”
Finra defines a U3 halt as one occurring “because FINRA has determined that an extraordinary event has occurred or is ongoing that has had a material effect on the market for the OTC Equity Security or the security underlying an OTC ADR or has caused or has the potential to cause major disruption to the marketplace or significant uncertainty in the settlement and clearance process.”
Below is the full SEC order.