The US Securities and Exchange Commission has temporarily stopped trading of Crypto Treasury Company QMMM Holdings due to potential stock manipulation, just coming a week after reports that have been regulating a regulation of some Crypto Treasury companies.
“The commission has temporarily suspended trading in QMMM security due to potential manipulation,” the agency told a Notice On Monday, the stop of QMMM stock trading for 10 days of trading.
It said the alleged manipulation was “effective through recommendations, made to investors by unknown people via social media to buy” QMMM sharing, “which seems to be designed to artificially decompose prices and quantities.”
QMMM Holdings shares over 1,700% in the past month after announcing on September 9 to buy and hold Bitcoin (Btc), Ether (Eth) and Solana (Sol), Join Dose -Docated companies That will make similar motions to hopes to boost their shares.
The SEC and QMMM holdings do not immediately respond to a request for comment.
The crypto approach that is unrelated to the cessation of trading
Carl Capolingua, senior editor of the Market Analysis Platform Market Index, told Cointelegraph that such SEC trade suspensions were “very rare, generally due to the consequences for the company’s management.”
“If the SEC can link the ‘unknown people’ responsible for promoting the company’s stock purchase back to employees, or worse, in management, then the penalties can be severe, including large fines or prison hours,” he added.
Capolingua said while QMMM’s crypto pivot could make business more attractive -some investors, this crypto approach was “unlikely an investigation item” for the SEC because the so -called “illegal stock promotion is the main issue here.”
IG Australia’s analyst Tony Sycamore told Cointelegraph that if investors want crypto exposure, “these types of Hail Mary are not the way to do this.”
QMMM gets more than 1,700% before i -pause trading
Shares to the QMMM Holdings (QMMM) closed the trade on Friday at $ 119.40, which gained more than 1,730% last month from around $ 6.50.
QMMM has moved from $ 11 to a full time of $ 207 on a single day After announced that it will build a Crypto Analytics platform and initially spend $ 100 million in stockpile cryptocurrencies.
Sec, Finra reported investigation of crypto treasures
SEC trade in QMMM follows a Report In the Wall Street Journal on Thursday the regulator and the regulatory authority in the financial industry contacted some of the companies that launched the Crypto Treasury strategy.
Related: Crypto Treasury MNAV Metric ‘needs to be removed’ – Nydig
The SEC and Finra have evaluated the unusual high trading volume and the prices of the company’s stock leading to the public announcement of their crypto pivots, according to people familiar with this matter.
The SEC rules dictate that companies cannot be selected to reveal non -public information, as those who know can use information to unfairly obtain or prevent losses leading to a broader public disclosure.
Crypto Treasury companies have been the hottest trend on Wall Street in recent months, with the journal reporting that more than 200 new companies have announced plans to buy and hold crypto.
Such announcements are common, but not always, boost the company’s stock price; However, some analysts are concerned that the The market is filled and can see many companies that have fallen if the value of their holdings exceed the value of their market.
Magazine: How Ethereum Treasury Companies can spark ‘Defi Summer 2.0’
