US regulator halts trading in firm that soared 959% on crypto plan
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The US Securities and Exchange Commission suspended trading in QMMM Holdings, saying the stock may have been manipulated by touts on social media.
PHOTO: REUTERS
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NEW YORK - The US Securities and Exchange Commission (SEC) suspended trading in QMMM Holdings after its shares surged almost 1,000 per cent in less than three weeks, saying the digital media advertising firm’s stock may have been manipulated by touts on social media.
QMMM’s stock has surged 959 per cent since before the company said earlier in September that it was establishing a “diversified cryptocurrency treasury” that would initially reach US$100 million (S$129 million) and target Bitcoin, Ethereum and Solana.
In its Sept 9 release, QMMM also said it was announcing its “strategic entry into the cryptocurrency sector”, citing the use of artificial intelligence and blockchain technology.
Recommendations on social media by “unknown persons” to buy QMMM may have manipulated the share price, the SEC said on Sept 29. The regulator did not say when the posts were made. The SEC said the suspension was temporary, ending at 11.59pm Eastern time on Oct 10.
Crypto treasury firms, which accumulate various tokens, have become increasingly popular in 2025. Some of these firms have seen sharp share declines.
The SEC also suspended the trading of Smart Digital Group on Sept 29, citing similar reasons. That suspension is set to end at 11.59pm ET on Oct 10.
The firm said last week it was establishing a “diversified cryptocurrency asset pool” that would focus on investing in digital assets like Bitcoin and Ethereum. Its stock price plunged since the announcement.
During both the first Trump and Biden administrations, the SEC pursued enforcement actions that focused on touts on social media related to digital assets. BLOOMBERG
