CZ Calls for Custodial Audits for All DAT Companies Amid QMMM “Runaway” Scandal
Binance founder Changpeng Zhao (CZ) has referred to as for stricter safeguards within the Digital Asset Treasury (DAT) sector. His Remarks observe the alleged collapse of QMMM, a US-listed agency accused of market manipulation and fleeing its Hong Kong workplace.
The scandal, broadly described as the primary “runaway Microstrategy”, has sparked renewed debate about transparency and accountability amongst publicly traded firms investing closely in crypto reserves.
CZ Demands Custodial Oversight for DAT Firms
In a put up on X (Twitter), CZ mentioned all DAT firms should use third-party crypto custodians and have their account setups audited by traders.
He added that this could now be a compulsory requirement for any YZi Labs investment in BNB-affiliated DAT projects.
“All DAT firms ought to use third occasion crypto custodians with account setup audited by traders. This is a prerequisite for YZi Labs investments in BNB DATs,” CZ wrote.
Changpeng Zhao’s remarks come after QMMM’s meteoric and suspicious rise. The US-listed agency introduced in September plans to speculate $100 million to construct reserves in Bitcoin (BTC), Ethereum (ETH), and Solana (SOL).
“As a part of this initiative, QMMM is establishing a diversified cryptocurrency treasury, initially specializing in Bitcoin, Ethereum, and Solana. The treasury is predicted to scale to a powerful $100 million,” read an excerpt within the announcement.
Following the announcement, the corporate’s inventory surged by over 960%. Within days, nevertheless, the SEC accused the corporate of manipulating inventory costs by way of social media.
Soon after, reviews from Caixin revealed that QMMM’s Hong Kong workplace in Seaview Building had been vacated. This prompted fears that the corporate’s executives had absconded.
“They Pumped the Headlines and Dumped the Truth”
The crypto group has reacted sharply to what many now name a textbook case of speculative deception.
Another pseudonymous account on X, The Master Builder, added a extra philosophical take, indicating that QMMM pumped the headlines and dumped the reality. According to the person, the headlines had been a bait lure.
Further investigations revealed that QMMM’s founder and CEO, KWAI Bun, a Hong Kong native and former TV persona, had beforehand participated in a singing competitors earlier than pivoting into crypto finance.
Records present QMMM went public in 2024 at $4 per share, elevating $8.6 million. The worth later spiked to $303 intraday, a 560-fold enhance, earlier than collapsing to $0.54.
The SEC halted buying and selling after uncovering artificially inflated volumes and potential Reddit-driven hype manipulation.
Industry Reaction and Lessons Ahead
Industry analysts have labeled QMMM a cautionary story of retail hype and unchecked leverage, echoing early 2021’s meme-stock phenomena.
CZ’s intervention indicators an emerging push for accountability inside the BNB ecosystem and the broader DAT area, the place firms handle digital property as a part of their treasury methods.
By demanding third-party custodianship and investor-audited accounts, CZ goals to stop fraudulent schemes from undermining institutional belief in crypto-linked company reserves.
As the QMMM fallout deepens, the incident mirrors a rising divide between real company crypto adoption and speculative imitation. Perhaps, discernment stays the final word hedge, particularly throughout bull markets.
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