CZ recommends third-party custodians for treasury firms following QMMM collapse

Binance’s founder Changpeng ‘CZ’ Zhao responded to the recent case of QMMM, a multi-coin treasury company which has allegedly disappeared. Zhao believes DAT companies should use a custodian to store their crypto as a precaution. 

Binance’s founder Changpeng ‘CZ’ Zhao said digital asset treasury (DAT) companies should use third-party custodians for their crypto. The statement came in response to the recent case of QMMM, one of the early treasury companies. The firm reportedly disappeared after the initial stock rally. 

All DAT companies should use 3rd party crypto custodians with account setup audited by investors.

This is a prerequisite for any @yzilabs investments in any #BNB DATs. https://t.co/POsFWZqoJG

— CZ 🔶 BNB (@cz_binance) October 17, 2025

Zhao has paid special attention to BNB companies, with Binance standing as a potential partner and custodian for those buyers.

As Cryptopolitan reported, QMMM gained the spotlight recently after its stock trading was suspended, following a 959% appreciation. The stock was suspended following accusations that the Hong Kong-based, US-listed company was using social media to manipulate the asset price. 

QMMM closes offices, disappears 

QMMM is the first DAT company to fold, even before announcing any actual purchases. QMMM planned to raise up to $100M for a multi-asset strategy, focusing on BTC, ETH, and SOL. The company promoted itself on Reddit, which was also noted by the US SEC as potential manipulation. 

The QMMM stock rally also caused liquidations when traders attempted to short the company due to its risky profile. The unusual rally wiped out those short positions, leading to additional losses. At the peak, QMMM was valued at $990M. 

There is no direct data on whether QMMM managed to buy any crypto. The company’s latest round placed $8M in public shares, without outlining any intended crypto purchases. Before that, the company held a $8.6M IPO in early 2024. 

QMMM moved in during the peak euphoria stage of DAT companies, but so far only managed a brief rally of its stock over $300. Later, the stock fell to $119, when all trading was frozen. 

QMMM disappeared in September

Based on local reports, QMMM may have emptied out its Hong Kong offices in September. At that time, the company was already making claims to pouring $100M into crypto, with no further evidence. 

The company was headed by Kwai Bun, a Hong Kong native with reality TV fame. It went public in 2024 at $4 per share, later riding the wave of the DAT companies hype. 

The disappearance of the company from its offices coincided with the trading halt in the USA, as some suggested QMMM intended to cash out through the hype phase. 

According to other sources, the DAT company bubble may have burst, as there are no longer cases of stocks trading at a premium. The weakening prices of BTC, ETH, SOL and other assets are also leading to increased scrutiny for the DAT model. 

Some DAT companies also post their transparent reserves, while others claim hiding their wallets is for security reasons. Altcoin DAT companies are considered riskier, especially if they are not buying the tokens on the open market. According to Tom Lee, CEO of BitMine, the DAT bubble has burst, as most companies trade below the value of their crypto treasuries. However, some companies continue buying, showing long-term confidence or intending to use their treasury for staking and passive income.

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