On Friday, July 11th early in premarket (prior to 8AM Eastern) shares of CYNK were halted by FINRA and given a U3 “exraordinary event” halt code. That would be only the second ever FINRA halt of an OTC stock (following the halt of BOPT in 2013). However, the halt code was changed after 9:00AM to indicate that trading in the stock was suspended by the SEC. It appears that the FINRA halt was put out to prevent premarket trading in the stock in case the SEC suspension did not go into effect in time. The impetus for the halt and then trading suspension was of course the meteoric rise of the stock following wash trading, manipulated run-up, and then massive short-squeeze. I remind the reader that it is the SEC’s position that manipulating a stock to create a short squeeze is illegal market manipulation and they made that clear in their 2012 lawsuit against Harbinger Capital Partners.
CYNK will reopen for trading at the market open on Friday, July 25th. The reason for the trading suspension is as follows:
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.
There have been a few good articles about the CYNK manipulation, which has been unique in that it was not accompanied by any sort of paid promotion.
CYNK The Aftermath — Putting together more pieces to the puzzle (Promotion Stock Secrets)
Cynk Technology Is The New Scheme In Town (SeekingAlpha)
Here’s What Happened When We Tried Calling The CEO Of CYNK (Business Insider)
JAVIER ROMERO: I’m Not Actually The CEO Of CYNK And I Never Received One Dollar In Compensation (Business Insider)
Here’s The Real Story Behind The Founding Of CYNK, The Mysterious Penny Stock With The Surge That Shocked The Internet (Business Insider)
Cynk Makes the Case for Buying Friends, Naked Short Selling (Bloomberg View)
While I currently have no position in CYNK, I had actively traded it early on and managed to lose money overall in June because of my poor trading in CYNK. Below is one of my larger losses (net I think I lost about $13k on it)
IB batch import through 7/2/2014