--- title: SEC Halts Trading of Social Networking Stock That Gained 25,000% description: A $5 billion valuation on the social network with no members caught the eye of the SEC, which suspended trading in CYNK because of "concerns regarding the accuracy and adequacy of information in the marketplace and potentially manipulative transactions in CYNK’s common stock." authors: - name: Susie Poppick url: https://money.com/author/susie-poppick/ at_money_since: 2013 articles: 117 covers: - Investing - Banking - Business - Career Advice - Credit - Credit Cards - Economy and Politics - Education - Housing - Identity Theft - Insurance - Lifestyle - Loans - Personal Finance - Retirement - Shopping - Taxes - Technology social: - https://x.com/susiepoppick former_staff: true published: '2014-07-11T14:08:25.000Z' modified: '2024-04-16T03:59:01.000Z' section: Investing tags: - 25000% - CYNK - OTC stocks - over the counter - penny stock - zerohedge word_count: 198 canonical: https://money.com/cynk-sec-suspends-trading-penny-stock/ type: Article source: structured-blocks --- > **Disclosure:** We research all brands listed and may earn a fee from our partners. Research and financial considerations may influence how brands are displayed. Not all brands are included. [Learn more](https://money.com/page/disclaimer/). ![A Specialist trader watches his chart while working on the floor of the New York Stock Exchange](https://img.money.com/2014/07/new-york-stock-exchange.jpg) Regulators have [halted](https://www.otcbb.com/dynamic/marketwatch/mwsubhome.stm) trading of over-the-counter stock CYNK Technology, a social networking company with no revenue or members that inexplicably gained about [25,000%](https://money.com/penny-stock-gains-25000/) in recent days — and reached valuations of more than $5 billion. According to the [OTC Bulletin Board](https://www.otcbb.com), the halt is "SEC related," and a bulletin from the SEC further [explains](http://www.sec.gov/litigation/suspensions/2014/34-72594.pdf) that it has "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 halt will end at 11:59pm East Coast time on July 24. Federal securities laws allow the commission to suspend trading in any stock for up to ten days when the SEC "determines that a trading suspension is required in the public interest and for the protection of investors." Earlier today [Business Insider](https://www.otcbb.com/news/tradehalt/haltcodes.stm) reported that the OTC Bulletin Board classified the halt as U3, which is when FINRA determines an "extraordinary event" is affecting the market for a security. As of 9:30am, the halt was reclassified as [H10](https://www.otcbb.com/news/tradehalt/haltcodes.stm), an SEC trading suspension. Watch the video below to see Money editor Pat Regnier explain why you should watch out for stocks like CYNK. ```json { "@context": "https://schema.org", "@graph": [ { "@type": "BreadcrumbList", "@id": "https://money.com/cynk-sec-suspends-trading-penny-stock/#breadcrumb", "itemListElement": [ { "@type": "ListItem", "position": 1, "name": "Home", "item": "https://money.com" }, { "@type": "ListItem", "position": 2, "name": "Investing", "item": "https://money.com/investing/" }, { "@type": "ListItem", "position": 3, "name": "Penny Stocks", "item": "https://money.com/penny-stocks/" }, { "@type": "ListItem", "position": 4, "name": "SEC Halts Trading of Social Networking Stock That Gained 25,000%" } ] }, { "@type": "WebSite", "@id": "https://money.com/#website", "url": "https://money.com", "name": "Money", "publisher": { "@id": "https://money.com/#organization" } }, { "@type": "WebPage", "@id": "https://money.com/cynk-sec-suspends-trading-penny-stock/#webpage", "url": "https://money.com/cynk-sec-suspends-trading-penny-stock/", "name": "SEC Halts Trading of Social Networking Stock That Gained 25,000%", "isPartOf": { "@id": "https://money.com/#website" }, "datePublished": "2014-07-11T14:08:25.000Z", "mainEntity": { "@id": "https://money.com/cynk-sec-suspends-trading-penny-stock/" }, "inLanguage": "en-US", "breadcrumb": { "@id": "https://money.com/cynk-sec-suspends-trading-penny-stock/#breadcrumb" }, "dateModified": "2024-04-16T03:59:01.000Z" }, { "@type": "Article", "headline": "SEC Halts Trading of Social Networking Stock That Gained 25,000%", "articleSection": "Investing", "image": [ { "@type": "ImageObject", "url": "https://img.money.com/2014/07/new-york-stock-exchange.jpg", "width": 3500, "height": 2333, "caption": "A Specialist trader watches his chart while working on the floor of the New York Stock Exchange" } ], "author": [ { "@type": "Person", "name": "Susie Poppick", "url": "https://money.com/author/susie-poppick/", "@id": "https://money.com/author/susie-poppick/#author", "image": "https://img.money.com/2014/05/14-05-21_bio_author_poppick.jpg?quality=85&w=190&h=190&crop=1", "email": "susie_poppick@moneymail.com", "sameAs": [ "https://x.com/susiepoppick" ] } ], "publisher": "https://money.com/#organization", "datePublished": "2014-07-11T14:08:25.000Z", "description": "A $5 billion valuation on the social network with no members caught the eye of the SEC, which suspended trading in CYNK because of \"concerns regarding the accuracy and adequacy of information in the marketplace and potentially manipulative transactions in CYNK’s common stock.\"", "abstract": "A $5 billion valuation on the social network with no members caught the eye of the SEC, which suspended trading in CYNK because of \"concerns regarding the accuracy and adequacy of information in the marketplace and potentially manipulative transactions in CYNK’s common stock.\"", "@id": "https://money.com/cynk-sec-suspends-trading-penny-stock/", "inLanguage": "en-US", "dateModified": "2024-04-16T03:59:01.000Z", "wordCount": 198, "keywords": [ "25000%", "CYNK", "OTC stocks", "over the counter", "penny stock", "zerohedge" ], "about": [ { "@type": "Thing", "name": "Investment", "sameAs": [ "https://en.wikipedia.org/wiki/Investment" ] }, { "@type": "Thing", "name": "Penny stock", "sameAs": [ "https://en.wikipedia.org/wiki/Penny_stock" ] } ] } ] } ```