Core Insights - Binance founder Changpeng Zhao (CZ) has called for stricter safeguards in the Digital Asset Treasury (DAT) sector following the alleged collapse of QMMM, a US-listed firm accused of market manipulation [1][4] - CZ emphasized the necessity for DAT companies to utilize third-party crypto custodians and have their account setups audited by investors, making this a requirement for YZi Labs investments in BNB-affiliated DAT projects [2][3] Company Developments - QMMM announced plans in September to invest $100 million in building reserves in Bitcoin (BTC), Ethereum (ETH), and Solana (SOL), aiming to establish a diversified cryptocurrency treasury [3] - Following the announcement, QMMM's stock surged by over 960%, but soon after, the SEC accused the company of manipulating stock prices via social media [4] Market Reactions - The crypto community has reacted strongly to the situation, labeling it a case of speculative deception, with commentary suggesting that QMMM's actions were misleading [5]
CZ Calls for Custodial Audits for All DAT Companies Amid QMMM “Runaway” Scandal
Yahoo Finance·2025-10-17 07:14