Former Binance CEO Changpeng Zhaocalled on cryptocurrency treasury companies after the activities of Hong Kong-based QMMM Holdings ceased. Zhao has no deposits without structures that are open to investor auditing and use third-party custody services. cryptocurrency treasure He stated that (DAT) investment cannot be considered safe. The statement was interpreted as a warning to the sector at a time when investor confidence was shaken.
“Investor Audit is a Must for Transparency”
Zhao, X In his post on his account, he argued that all DAT companies should work with third-party cryptocurrency custody institutions and that account setups should be audited by investors. of this principle AI LabsHe emphasized that is a prerequisite for all DAT investments in the BNB ecosystem.
Explanation cryptocurrency marketIt brought the issue of asset security, which is frequently discussed in Turkey, back to the agenda. In particular, the fact that large amounts of crypto money held by companies in their own wallets are not subject to independent audit has recently become a serious risk factor for both investors and regulatory institutions. Zhao’s proposal aims to combine decentralized finance principles with institutional trust mechanisms.
QMMM Case Reveals Security Vulnerability
In the background of Zhao’s statement, Hong Kong-based QMMM HoldingsThere is a crisis created by . The company, which is traded on Nasdaq, had an 860 percent increase in its shares in three weeks after announcing a $100 million cryptocurrency reserve plan in September. However, the US Securities and Exchange Commission (SEC) suspended stock trading on September 29, alleging that the company engaged in price manipulation via social media.
In mid-October, it was reported that QMMM’s office in Hong Kong was evacuated and ceased operations. This development, which investors lost track of, was considered as a concrete example of the lack of institutional control in the field of cryptocurrency finance. Zhao’s call is seen as a step towards preventing similar scandals and restoring institutional trust in the industry.
