iSignthis MD John Karantzis was one of the beneficiaries of the massive performance rights issue.
The ASX ordered the company into a suspension from trading on Thursday morning"with immediate effect"under Listing Rule 17.3 - where the suspension is not at the company's request.
The securities regulator said the decision was made in consultation with ASIC pending the outcome of inquiries to be made by the two regulators"into a number of issues concerning[the company]".
Isignthis founder and chief executive John Karantzis confirmed the company was responding to separate queries from the ASX and ASIC,which have been triggered by recent share price movements.
“The company welcomes any opportunity to address regulator queries,which are a normal part of operating in regulated markets and industries,and is fully co-operating with regulators,"he said. Mr Karantzis pointed out the company has faced multiple audits over the last year"without any material concerns arising".
iSignthis has been under intense scrutiny after a dream run this year which saw its share price rise more than 10-fold from 14¢ to a record intraday high of $1.765 last month.
iSignthis's market value climbed to peak of $1.8 billion last month before its shares plunged aftera report from shareholder advisory firm Ownership Matters.
The report raised concerns about how the company managed to report revenue of $5.5 million for the half-year ending June 30 last year,a result that triggered the release of performance rights over 337 million shares to top executives.