Digital Asset Treasury (DAT) firms are facing increased scrutiny after the recent Nasdaq-listed QMMM Holdings controversy. Binance Co-Founder Changpeng Zhao (CZ) has called for stricter safeguards for Digital Asset Treasury (DAT) companies after QMMM’s alleged stock price manipulation.
In a post on X, CZ highlighted that all DAT companies must use standalone third-party crypto custodians and have their account setups audited by investors. He further stated that these measures are required for any YZi Labs BNB DAT investment, highlighting the importance of openness in the new industry.
The QMMM controversy
CZ’s warning comes after QMMM announced plans to invest $100 million into cryptocurrency reserves, including Bitcoin, Ethereum, and Solana in September 2025. This caused its stock price to surge nearly tenfold within three weeks.
The U.S. Securities and Exchange Commission (SEC) subsequently charged the company with possible manipulation of its stock price, leading to a short-term trading halt between September 29 and October 10, 2025. The SEC cited “potential manipulation in the securities of QMMM effected through recommendations” as a major reason for the suspension. Following this, Nasdaq also halted trading in QMMM Holdings on October 11, 2025.
Unclear corporate operations
According to SEC filings, QMMM’s principal executive offices were located at Unit 1301, Block C, Sea View Estate, 8 Watson Road, Tin Hau, Hong Kong. Investigations revealed that QMMM’s Hong Kong office in the Seaview Building was completely vacated, with no clear information on the company’s current location.
QMMM, which is Cayman Islands-registered, has two subsidiaries, Manymany Creations and Quantum Matrix, specializing in media and animation. Both Hong Kong-registered subsidiaries, listed as advertising and marketing research companies, had raised eyebrows regarding their ability to handle a huge cryptocurrency treasury.
The debacle has intensified calls in the crypto sector for increased protection for investors, such as third-party custody, independent audits, and increased transparency to avoid such scenarios in the future.
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