As a researcher following the digital asset space, I’ve been paying close attention to recent events. Changpeng Zhao, the founder of Binance, is now urging for stronger regulations and safety measures within the Digital Asset Treasury sector. This call comes after the reported failure of QMMM, a US-based company that’s been accused of manipulating the market and abruptly closing its Hong Kong office.
The recent controversy, often called the first of its kind involving Microstrategy, has brought fresh attention to how openly and responsibly public companies should manage their significant investments in cryptocurrencies.
CZ Demands Custodial Oversight for DAT Firms
In a message on X (formerly Twitter), CZ announced that all DAT companies are now required to use independent crypto custodians and have their account setups reviewed by investors.
From now on, YZi Labs will require all investments in projects related to DAT and BNB to meet this standard.
According to CZ, YZi Labs will only invest in BNB-based Data Availability Tokens (DATs) if the companies behind them use independent crypto custodians and have those accounts verified by investors.
Changpeng Zhao made these comments following the rapid and unusual growth of QMMM. The company, which is listed on a US stock exchange, revealed in September that it intends to invest $100 million in Bitcoin, Ethereum, and Solana as part of its reserves.
QMMM is starting a cryptocurrency fund, beginning with Bitcoin, Ethereum, and Solana. They plan to grow this fund to $100 million, according to a recent announcement.
After the company made a public announcement, its stock price skyrocketed, increasing by more than 960%. But shortly after, the Securities and Exchange Commission (SEC) alleged that the company had artificially inflated its stock price using social media.
Shortly after that, reports from Caixin indicated that QMMM had moved out of its Hong Kong office in the Seaview Building, leading to concerns that the company’s leaders had fled.
“They Pumped the Headlines and Dumped the Truth”
People in the crypto world are strongly criticizing what appears to be a clear example of manipulative speculation.
Shares of QMMM, a company listed in the U.S., soared nearly ten times in value after announcing a $100 million investment in Bitcoin, Ethereum, and Solana. However, the company is now being accused by the SEC of market manipulation, and its Hong Kong office seems to be closed.
— Whale Insider (@WhaleInsider) October 17, 2025
On X, a user named The Master Builder offered a different perspective, suggesting that QMMM intentionally highlighted sensational headlines while downplaying the facts. They described the headlines as a deliberate lure to mislead people.
Additional research showed that KWAI Bun, the founder and CEO of QMMM, originally from Hong Kong and a former TV host, had competed in a singing contest before entering the world of cryptocurrency finance.
QMMM became a publicly traded company in 2024, initially selling shares for $4 each and raising a total of $8.6 million. The stock price quickly surged to a high of $303 during the day – an incredible 560 times its original value – but then dramatically fell to just $0.54.
The Securities and Exchange Commission stopped trading after finding evidence that trading volume had been artificially increased, and that online discussions on Reddit may have been used to manipulate the market.
Industry Reaction and Lessons Ahead
Experts are calling QMMM a warning about the dangers of overblown retail excitement and excessive borrowing, similar to what happened with the original meme stocks in early 2021.
A new company focused on cryptocurrency has collapsed. QMMM, a US-based company that initially announced plans to invest $100 million in Bitcoin, Ethereum, and Solana, saw its stock price jump a dramatic 960% before facing accusations from the Securities and Exchange Commission (SEC).
— PiNetwork⚡️阿龙 (@fen_leng) October 17, 2025
CZ’s actions suggest a growing demand for transparency and responsibility within the BNB network and the broader digital asset management industry, especially for companies using cryptocurrencies as part of their financial planning.
CZ is pushing for independent oversight of crypto reserves – requiring them to be held by trusted third parties and regularly audited – to build confidence among institutions and prevent scams.
With the ongoing issues surrounding QMMM, it’s becoming clear that there’s a widening gap between companies truly embracing cryptocurrency and those just jumping on the bandwagon for quick profits. Being able to tell the difference between the two may be the best way to protect yourself, particularly when the market is booming.
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2025-10-17 11:07