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- Nidhi Kolhapur
Nidhi Kolhapur
Nidhi is a Certified Digital Marketing Executive and Passionate crypto Journalist covering the world of alternative currencies. She shares the latest and trending news on Cryptocurrency and Blockchain.
- Reviewed by:
Zafar Naik - Oct 17, 2025 09:23 UTC
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Binance’s CZ Demands Custodians, Investor Audits Across DATs Amid QMMM Scandal
Binance founder CZ calls for third-party custodians and investor-audited accounts across DATs.
Regulators are investigating 200+ crypto-holding companies over suspicious trading activity.
Experts warn the DAT sector may be in a bubble; while the stocks slump
Digital Asset Treasuries, or DATs, have become one of the hottest topics in crypto lately, offering huge potential gains.
But with the hype comes growing risk, as questions around transparency and fund safety have started to emerge. Binance founder CZ has now stepped in, calling for stronger safeguards and accountability across the DAT ecosystem.
CZ Pushes for Custodians and Investor Audits
The warning comes after reports that the DAT company, QMMM, may have disappeared with investors’ funds. CZ said all DAT firms should use trusted third-party crypto custodians and have their accounts audited by investors.
He also shared that this will now be a mandatory step for any BNB DAT project looking to secure investment from YZi Labs, signaling a positive shift towards more transparency in the industry.
QMMM Disappears Amid Allegations of Stock Manipulation
The trouble started when QMMM, one of the first “micro-strategy” DAT companies, suddenly disappeared. The U.S.-listed firm had announced plans to invest $100 million in BTC, ETH, and SOL, and its stock price shot up to 9.6 times after the news.
But soon after, the SEC accused it of using social media to manipulate its stock. Reports from Caixin now say QMMM’s Hong Kong office is completely empty, sparking suspicions that the company may have shut down and taken off with investor’s money.
This case serves as a big wake-up call for the crypto space. Regulators like the SEC and FINRA are now investigating 200+ crypto-holding companies for suspicious stock activity and potential insider trading.
Companies launching DATs have seen unusual price movements before public announcements, increasing both regulatory and market concerns.
Signs of a DAT Bubble
BitMine chairman Tom Lee believes that the digital asset treasury (DAT) sector may already be experiencing a bubble burst. He pointed out that many DATs are trading below their net asset value, the value of their underlying cryptocurrency holdings, indicating early signs of a market correction.
For example, Metaplanet’s market-to-net asset value (mNAV) recently fell below 1 for the first time, meaning its market capitalization dropped below the value of its Bitcoin holdings.
Bitcoin Buys Slows, Stocks Slump
Bloomberg reports that DATs have accumulated around $140 billion in Bitcoin and helped push prices to record highs. However, purchases have slowed since early summer, coinciding with falling stock prices.
Strategy and Metaplanet have experienced decline in stock prices reflecting broader market trends and investor sentiment. Strategy is down 12% in the past day, while Metaplanet stock is down 6%.
Experts like Cardano’s Charles Hoskinson say DATs must evolve from speculative trades into long-term investment vehicles focused on blockchain development.
Amid the growing risks in this space, CZ’s call for third-party custodians and investor-audited accounts offers a clear path ahead. Greater transparency and accountability can help DATs protect investors and rebuild trust in the market.
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FAQs
A DAT is a company that holds cryptocurrencies like Bitcoin as a treasury asset, similar to how a fund operates, aiming to generate returns for investors.
Risks exist, including potential fraud. Experts now recommend DATs use third-party custodians and allow investor audits to ensure fund safety and transparency.
Adopting mandatory third-party custodianship and transparent, investor-auditable accounts are key steps to build trust and protect investments in DATs.
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