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CZ Demands Third-Party Custody and Investor Audits for Crypto Treasury Firms After QMMM Collapse

The Binance founder says YZi Labs will back only DAT projects that use external custodians with investor-verified account setups.

Overview

  • Changpeng Zhao called for all Digital Asset Treasury companies to adopt third-party crypto custodians and investor-audited onboarding.
  • He made the policy a prerequisite for YZi Labs investments in BNB-affiliated DAT projects, citing trust and transparency concerns.
  • QMMM, a US-listed firm, had announced plans for a $100 million treasury in Bitcoin, Ethereum, and Solana before its shares spiked roughly 960%.
  • The U.S. Securities and Exchange Commission later accused QMMM of stock manipulation tied to social media-driven hype.
  • Reporting described QMMM’s Hong Kong office as vacated and investigators said they found no credible on-chain evidence for the firm’s claimed Solana reserves.