SEC Halts Trading in CYNK, a Mysterious Penny Stock

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By Everett Rosenfeld

Federal regulators on Friday halted trading in CYNK Technology, the mysterious over-the-counter stock that ran from a few cents to over $21 in a month.

The stoppage was ordered at 8 a.m. by the Financial Industry Regulatory Authority for an "extraordinary event," according to the OTC Bulletin Board. At 9:30 a.m., the reason for the halt was updated to indicate that it was ordered by the U.S. Securities and Exchange Commission. According to CYNK's SEC suspension order, the halt will last until 11:59 p.m. July 24.

"The Commission temporarily suspended trading in the securities of CYNK because of concerns regarding the accuracy and adequacy of information in the marketplace and potentially manipulative transactions in CYNK's common stock," the order stated.

The company -- formerly known as Introbuzz, according to filings -- said it runs a social networking site called IntroBiz. That site says it allows users to "both buy and sell the ability to socially connect to individuals such as celebrities, business owners, and talented IT professionals."

Many, including the company's former auditor, have expressed their concerns that CYNK's meteoric rise was suspicious given its lack of financial reporting. The company has one recorded employee and only a few dollars of assets.

From its peak at over $21 on Thursday, CYNK's stock had fallen to about $14.

The company, formerly known as Introbuzz according to filings, said it runs a social networking site called IntroBiz. That site says it allows users to "both buy and sell the ability to socially connect to individuals such as celebrities, business owners, and talented IT professionals."


Many, including the company's former auditor, have expressed their concerns that CYNK's meteoric rise was suspicious given its lack of financial reporting.

For more on CYNK, click here.


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12 Comments

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Mantis

Yea no red flags here at all....

July 13 2014 at 7:25 PM Report abuse rate up rate down Reply
Skai

Does this mean I can short when they open? Business sounds completely fraudulent at worse - doomed for failure at best - when celebrities change their contact info and/or sue

July 13 2014 at 7:06 PM Report abuse rate up rate down Reply
Paula Ann

YEah, sure..with this news who'se the first to sell their portfolios...Buffet??

July 13 2014 at 6:38 PM Report abuse +1 rate up rate down Reply
weilunion

The whole stock market is pump and dump. Wait until it crashes again.

July 13 2014 at 4:00 PM Report abuse rate up rate down Reply
petpetdon

Stocks are manipulated on a daily basis. It has been rigged for years. Fast computers buying stocks at a blurring pace, while the small investor is shut out. IPOs can never be bought by the small investor. They get bought up by the mutual funds and big investors first. Whatever is left over after they gotten to price high enough is then sold to the little guy

July 13 2014 at 11:12 AM Report abuse +2 rate up rate down Reply
1 reply to petpetdon's comment
weilunion

Exactly. It is a Casino economy where the house always wins

July 13 2014 at 4:02 PM Report abuse +2 rate up rate down Reply
mkywalst2

Short it

July 12 2014 at 12:03 PM Report abuse +1 rate up rate down Reply
Lovemykids

That's cynical.Now CYNK will sink !

July 11 2014 at 10:37 PM Report abuse +2 rate up rate down Reply
darbrow717

Maybe they should look into some of those commodities traders, this would be happening every day.

July 11 2014 at 3:34 PM Report abuse +6 rate up rate down Reply
1 reply to darbrow717's comment
darinw40

yes...like you are insinuating.....crude trading should be outlawed as it destroys lives from increased prices on everything

July 11 2014 at 7:16 PM Report abuse +6 rate up rate down Reply
Mary Lou

Ah..imagine that.....stopping the trading because something doesn't look right!!!!! LOLOL

July 11 2014 at 3:28 PM Report abuse +1 rate up rate down Reply
tmlbtb

Ahhhh, the 'fix' is still in.

July 11 2014 at 2:48 PM Report abuse +2 rate up rate down Reply