The SEC froze trading in QMMM shares after a rapid rise.
Date: 2025-10-01 Author: Gabriel Deangelo Categories: BUSINESS
The US Securities and Exchange Commission (SEC) decided to temporarily suspend trading in QMMM Holdings shares. The reason for this was the unprecedented price movement: the company's shares rose more than 2,000% in less than a month.
The sharp rise began after QMMM announced plans to add cryptocurrencies to its reserves in early September – Bitcoin, Ethereum, and Solana. According to Yahoo.Finance, the company's stock price rose from $7.50 to $119, and briefly reached $303.
The SEC notice stated that trading was frozen for 10 business days, effective September 29. The regulator emphasized that it suspected that the stock price was driven up by social media posts where unknown individuals distributed buy recommendations. According to the commission, these actions may have been aimed at artificially inflating the price and trading volume.
QMMM, a Hong Kong-registered company, previously announced its intention to build a cryptocurrency treasury portfolio of up to $100 million.
The trading halt coincided with a broader investigation launched by the SEC and FINRA into so-called DAT entities. More than 200 companies that reported holding crypto assets in their reserves were under investigation. According to the Wall Street Journal, regulators' attention was drawn to repeated instances: the prices of these issuers steadily increased shortly before official announcements of digital currency purchases.
According to Bitcoin Treasuries, there are 196 such companies worldwide. Collectively, they control over 1 million BTC, which is valued at over $110 billion and represents approximately 4.6% of the total Bitcoin supply.
At the same time, Bloomberg notes that a new trend is emerging in the crypto industry. This is a case of rapidly growing interest in digital treasuries, supported by initiatives from influential market participants.
Thus, the QMMM situation turned out to be not just a local story, but also part of a larger process attracting increased attention from US regulators.
