Trading of Cynk Technology shares is suspended after the Securities and Exchange Commission noticed a number of irregularities in information regarding the supposed social network company.
An official announcement regarding the SEC decision is murky and trading of the stock is suspended through July 24.
The SEC said trading would cease "because of concerns regarding the accuracy and adequacy of information in the marketplace and potentially manipulative transactions in Cynk's common stock."
Cynk had sparked massive media coverage after it saw its stock price increase some 25,000 percent over a few days period.
The company stock was traded as a penny stock. As one report notes, Cynk supposedly operates a social network but it appears to have no assets, members, revenue and public filings don't appear to be legitimate information.
On July 10, Cynk saw its market cap surge to more than $5 billion.
According to a posting on OTC Bulletin Board, the suspension is a "U3" halt, which is an "extraordinary event halt."
"Trading is halted 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," the OTC statement read. FINRA, the Financial Industry Regulatory Authority, is a private company that acts as a self-regulating body for the securities industry.
The SEC is calling on potential investors to be leary and cautious over the future of the company.
"The commission cautions brokers, dealers, shareholders, and prospective purchasers that they should carefully consider the foregoing information along with all other currently available information and any information subsequently issued by the company," said the SEC.
