The SEC halted trading in CYNK Technology Corp (OTCMKTS:CYNK) earlier today on the back of speculation that the stock was part of some kind of illegal activity. The stock attracted attention in recent days after it rose in value by more than 240 times in the last month. The company is apparently some kind of social network, but there’s no real proof that it does anything at all, and it certainly doesn’t have any revenue.
A statement from the Securities and Exchange Commission said that trading was halted “because of concerns regarding the accuracy and adequacy of information in the marketplace and potentially manipulative transactions in Cynk’s common stock.” The type of manipulation suspected is not clear, but there are some good guesses about the nature of schemes that could have driven the stock so high in such a short period of time.
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Why manipulate CYNK Technology?
So, why would anybody manipulate CYNK Technology Corp (OTCMKTS:CYNK) stock? Anybody who has seen Wolf of Wall Street will have their own theories about the nature of the fraud that the company may have been involved in, but even financial experts are at a loss to completely explain most of the odd transactions that took place over the counter over the last few days.
Marlon Sanchez, who owns 72 percent of the company, is listed as the company’s president, chief executive officer, chief financial officer, chief accounting officer, secretary, treasurer and director. The most common explanation is in fact straight from the Martin Scorcese picture, but that might be difficult to prove.
Twitter and other forms of social media have apparently been used to promote the stock to unwary buyers in recent weeks and the stock may be being pushed in order to increase its value in order to benefit those currently holding the stock.
Zero Hedge, which originally exposed CYNK Technology Corp (OTCMKTS:CYNK) earlier this week, said little about the exact nature of the fraud suspected of being perpetrated but instead focuses on what is views as a stock exemplary of the inflationary policies of the Federal Reserve. Whatever the cause, regulators will be spending many sleepless nights trying to figure out what’s going on at the Belize based company.
CYNK investigation continues
The investigation into the nature of the odd trading in CYNK Technology Corp (OTCMKTS:CYNK) stock is underway. Now that trading has been halted it’s clear that FINRA and the SEC are concentrating on getting to the bottom of whatever went on with the company’s stock.
The trading suspension will be lifted at 11:59 p.m. EDT on July 24 according to the regulator statement, giving the agencies two weeks in order to figure out what happened at CYNK Technology Corp (OTCMKTS:CYNK).