The company which is set to take over the world’s largest file-sharing site, The Pirate Bay, has had its shares frozen while the site itself has once again been ordered to be shut down.
Global Gaming Factory shares were frozen on the Swedish Aktietorget exchange, after it was revealed chief executive Hans Pandeya has been reported to the Swedish enforcement service for unpaid debts.
He allegedly owes more than $1 million, including tax debt, according to former GFF board member Johan Sellstrom, who is also suing the company for money he is reportedly owed.
“Global Gaming Factory has not provided information showing that the full amount is secured,” Aktietorget said in a statement.
“Aktietorget found that the conditions for an effective trading is not present and decided to suspend trading in (Global Gaming) shares until the requested information was provided.”
Additionally, the Swedish SVD newspaper has reported that regulatory officials began an investigation into the Global Gaming Factory back in June, when the company announced its $US8 million acquisition of The Pirate Bay.
The developments could put a block on the company’s plans for the site, as it is reportedly in talks with a major record label to sell downloadable content. GGF plans to turn the site from a source of copyrighted material to an online store, similar to Apple’s iTunes.
But Pandeya has come to his own defense, telling V3.co.uk the site’s shares were frozen due to an investigation by the Aktietorget for more information on the acquisition.
“Because the market is not sure of our backers, there is an extra look into that process [by the exchange]. On Friday last week, the stock exchange wanted documents to confirm and has halted trading until we disclose this information. We will disclose the investors after our shareholder meeting on Thursday,” he said.
Meanwhile, The Pirate Bay was momentarily shut down due to a ruling in a Swedish court that it cease operation. While The Pirate Bay and its four founders were convicted of copyright infringement several weeks ago, the site still operates as the team appeals the sentence.
The court ordered the ISP Black Internet to remove The Pirate Bay from operation, but the site appeared three hours later when it was transferred to a new host.
“Even though large parts of Internets and many old and famous trackers have fallen or may fall into the grip of the IFPI [International Federation of the Phonographic Industry] and all the odious apparatus of MPAA [Motion Picture Association of America] rule, we shall not flag or fail,” the current operators, who were sentenced to one year in jail for their copyright-related crimes, wrote in a blog post.
The site is currently selling a t-shirt that reads: “I spent months of my time and millions of dollars to close down The Pirate Bay and all I’ll get is this beautiful t-shirt”.
Patrick Stafford is a freelance journalist and a former deputy editor of SmartCompany.
