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Binance founder Changpeng Zhao is demanding mandatory third-party custody audits for all crypto treasury companies after QMMM—a U.S.-listed firm that surged 960% on a $100 million Bitcoin reserve announcement—collapsed to near zero amid SEC fraud allegations.
The company’s Hong Kong office has been vacated and its founder, former TV personality Kwai Bun, is reportedly missing as trading remains halted. The spectacular pump-and-dump, which some are calling “the runaway MicroStrategy,” has reignited calls for stricter oversight in the emerging digital asset treasury sector.
In an X (Twitter) post, CZ stated that all DAT firms should undergo custodial oversight and investor-led auditing, making this a new prerequisite for YZi Labs’ investments in BNB-affiliated treasury projects.
The QMMM collapse audit comes after the company’s September announcement of a plan to build a $100 million diversified crypto treasury focusing on Bitcoin (BTC), Ethereum (ETH), and Solana (SOL).
“As part of this initiative, QMMM is establishing a diversified cryptocurrency treasury, initially focusing on Bitcoin, Ethereum, and Solana. The treasury is expected to scale to an impressive $100 million,” QMMM announcement.
However, within days of that statement, the SEC accused QMMM of manipulating stock prices via social media campaigns. Soon after, reports from Caixin revealed that QMMM’s Hong Kong office, located in the Seaview Building, had been vacated — sparking fears that the company’s executives had fled the country.
The crypto community has reacted sharply to the revelations surrounding the QMMM collapse audit, with many calling it a classic case of speculative hype gone wrong.
One pseudonymous X user, The Master Builder, commented that QMMM “pumped the headlines and dumped the truth,” calling the company’s meteoric rise a “bait trap” for retail investors.
Further investigation revealed that QMMM’s founder and CEO, KWAI Bun, a former Hong Kong TV personality and singing competition participant, had pivoted into crypto finance in 2024. The company went public that same year at $4 per share, raising $8.6 million. Its stock later skyrocketed to $303 before collapsing to just $0.54.
The SEC subsequently halted trading after uncovering inflated trading volumes and suspected Reddit-driven hype manipulation — key findings now central to the ongoing QMMM collapse audit.
Analysts describe the QMMM collapse audit as a cautionary tale — a stark reminder of the dangers of unchecked hype, leverage, and opaque treasury practices. The scandal’s ripple effect is already prompting calls for regulatory action and self-governance within the crypto-treasury ecosystem.
CZ’s push for investor-audited accounts and third-party custodians reflects a broader attempt to rebuild trust and enforce accountability across DAT companies, especially those integrating digital assets into their corporate balance sheets.
The incident has reignited questions about whether speculative firms are undermining the legitimacy of genuine corporate crypto adoption. As one industry observer noted, “Discernment may be the only hedge left when hype outpaces substance.”
In the wake of the QMMM collapse audit, market players are bracing for heightened scrutiny — and perhaps, long-overdue reform in how digital asset treasuries operate.
