SEC opens fire! Suspends trading of cryptocurrency reserve companies QMMM and SDM stocks: involved in price manipulation and speculation.

SEC suspicious of social media manipulation, swiftly suspends trading of QMMM and SDM stocks, ringing alarm bells for companies eager for "Crypto Treasury". (Background: Standard Chartered warns DAT digital treasury: narrative heading into a death spiral, multiple mNAVs fall below 1) (Supplementary background: The wind has changed! Bloomberg reports Wall Street "questions DAT narrative": Strategy's stock plummets, market loses confidence in crypto hoarding) The U.S. Securities and Exchange Commission (SEC) struck hard late on the 29th, announcing an immediate suspension of trading for QMMM Holdings Ltd. until 11:59 PM on October 10. This digital media company, based in Hong Kong and listed on Nasdaq through a Cayman structure, had boldly announced three weeks ago plans to create a "diversified cryptocurrency treasury" worth up to $100 million, causing its stock price to soar nearly tenfold from the bottom, becoming the next "meme stock" of community interest. However, the SEC's statement named "unidentified individuals" inciting buy orders on social platforms, suspecting price manipulation, leading to the abrupt end of the celebration. The surging stock price and instantly frozen trading After QMMM announced its crypto plans on September 9, its stock price skyrocketed from below $12 to a high of $119.40 on September 27, accumulating a near 1,000% gain, fully reflecting investors' imagination of the "Blockchain + Artificial Intelligence" narrative. This emergency order from the SEC puts a stop to the big pump, directly citing the presence of "buy recommendation" posts on social media that could influence prices. The SEC's official document emphasizes: "Unidentified individuals' recommendations to buy QMMM may manipulate stock prices." This brief warning reveals regulatory authorities' high vigilance towards the interaction between retail investor communities and the capital market, and demonstrates to the entire market: as long as there is suspicion that someone is using social media for hype, crypto concept stocks are no exception and can be pulled from trading at any time. "Crypto Treasury" is both an opportunity and a trap A "Crypto Treasury" refers to companies converting part of their funds into Bitcoin (BTC), Ethereum (ETH), Solana (SOL), and other mainstream tokens, attempting to capture both appreciation and brand halo. By 2025, this trend is sweeping across various industries, and some companies are indeed gaining valuation bonuses. However, QMMM's financial report shows weak revenue and long-term losses, making it difficult for its main business to support the suddenly inflated market capitalization. When the stock price becomes disconnected from the fundamentals, the community hype can turn into a bubble. QMMM serves as the most vivid warning case: relying solely on a press release to package a digital media company as an "on-chain millionaire" ultimately cannot withstand the pressure of regulation and the rational return of the market. Another mirror: Smart Digital Group's reverse script On the same day that the SEC suspended trading, Smart Digital Group Ltd. was also affected. This company similarly announced the establishment of a crypto asset pool for BTC and ETH, but its stock price trend formed a mirror image with QMMM, plummeting about 86%. The reason lies in the announcement's lack of key details such as funding scale and asset allocation, leaving investors unable to assess feasibility and forced to vote with their feet. The SEC froze both cases together, indicating that regulatory oversight has expanded from individual companies to the entire "Crypto Treasury" craze, with the chemical reaction between social media and retail investors identified as a risk source. The dual suspension of QMMM and Smart Digital Group serves as a wake-up call for companies eager for "Crypto Treasury" in 2025, reminding the market once again: while crypto assets can provide growth imagination, without transparency and substantial revenue support, they are just fragile bubbles. Related reports Stock prices lackluster, purchasing power declines: Is the crypto treasury model nearing its end? OpenSea announces the launch of "NFT Reserve Treasury", purchasing CryptoPunk #5273 to protect digital asset culture The crypto treasury craze: governance innovation or the next capital harvest? "SEC fires! Suspends trading of crypto reserve companies QMMM and SDM: involved in price manipulation and speculation" This article was first published in BlockTempo, the most influential blockchain news media.