CZ Urges Crypto Custody Rules After QMMM Collapse
CZ advises third-party custody and audits for BNB DAT investment after QMMM's alleged exit.
- CZ responds to QMMM’s alleged rug pull with key safeguards.
- Advocates third-party custody for all DAT investments.
- YZi Labs sets strict rules for future BNB DAT investment.
Following the alleged exit scam by QMMM, which claimed to be the first DAT (Digital Asset Treasury) company, Binance founder Changpeng Zhao (CZ) has issued a strong warning to the crypto community. He emphasized the urgent need for stricter transparency and security measures, especially when it comes to handling investor funds in the Digital Asset Treasury sector.
QMMM’s sudden disappearance has raised concerns among retail and institutional investors alike. With no proper oversight or asset custody mechanisms in place, this incident underlines the growing risk of unregulated financial practices in the crypto industry.
CZ Recommends Third-Party Custodians and Audits
In response, CZ took to Twitter to suggest that all DAT companies should store user funds with third-party crypto custodians rather than handling them internally. This approach would ensure that the assets are secure and verifiable by independent entities.
He also highlighted the importance of investor-led audits during the account setup process. According to CZ, these two safeguards—independent custody and early-stage auditing—should be non-negotiable for any crypto firm managing public or investor assets.
YZi Labs Sets Terms for BNB DAT Investment
Backed by CZ’s opinion, YZi Labs has announced that it will require strict adherence to these rules for any future BNB DAT investment. The firm stated it will not invest in DAT companies that fail to use third-party custodians or do not allow investor-initiated audits.
This move may set a new industry standard, helping to protect funds and restore trust among investors in the evolving DAT ecosystem. It also sends a clear message: security and transparency are essential for the future of decentralized financial treasuries.
Read Also :
- Lowest Fee Bitcoin ATMs Announces Launch of More Than 400 ATMs Nationwide
- BlockDAG Joins NEAR and Solana as Top Crypto To Buy This Month – Play, Mine, Stake, and Build in One Ecosystem
- HSBC RedCoin Stablecoin Targets P2P and Merchant Payments
- September 29 ETF Flows: Bitcoin Leads With $66M Inflow
- Amaze Holdings (NYSE: AMZE) Executes Binding LOI to Acquire BullionFX | Alchemy, a Decentralized Gold-Backed Financial Ecosystem for Valued at US$155 Million
