SEC suspends crypto stock that skyrocketed 1,000%

The Securities and Exchange Commission (SEC) has temporarily suspended trading in QMMM Holdings Ltd. after its shares surged by nearly 1,000% in less than three weeks, citing potential manipulation, as per Bloomberg.

The price rise came after the digital media company announced a $100 million crypto treasury including Bitcoin, Ethereum, and Solana.

On Sept. 9, QMMM announced it was making a “strategic entry into the cryptocurrency sector,” with designs on creating a diversified digital asset treasury (DAT) powered by artificial intelligence and blockchain technology.

A DAT company refers to a company that holds a significant quantity of cryptocurrencies, similar to cash or commodities, on its balance sheet.

Investors greeted the announcement with enthusiasm, and the stock surged 959% in the weeks that followed.Paul Atkins, chairman of the US Securities and Exchange Commission (SEC), prior to speaking during a joint SEC-CFTC roundtable at SEC headquarters in Washington, DC, US, on Monday, Sept. 29Getty Images

But on Sept. 29, the SEC intervened, issuing a statement cautioning that recommendations to buy or sell stocks made over social media by "unknown persons” could have artificially inflated the stock price. The regulator did not say when or where such posts were shared. As such, QMMM's shares will remain temporarily suspended until 11:59 p.m. ET on October 10, according to the SEC notice.

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QMMM is based in Hong Kong but has U.S. shares through a Cayman Islands holding company.

The company, as well as the stock exchange where the shares trade, Nasdaq, did not immediately respond to requests for comment.

Crypto treasury trend draws regulatory scrutiny

The case is a sign of mounting scrutiny of crypto treasury companies, which have been in vogue this year as businesses vie for exposure to digital tokens. Some have seen rapid gains, while others have extreme declines, prompting worries about volatility and investor protection.

Speculative digital asset plays have long been the target of social media touting schemes by the SEC. In both the Trump and Biden administrations, regulators took enforcement actions against influencers and promoters , often called Key Opinion Leaders or KOL, who they said distorted crypto stocks.

QMMM's halt in trading sheds light on the dangers of increasingly thinly traded equities shifting abruptly into the world of crypto, an area where regulatory scrutiny remains both active and contentious.

At press time, QMMM was priced $119.40, the last day of trading on Sep. 26.

TheStreet Roundtable reached out to QMMM Holdings and Nasdaq for comment.

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This story was originally reported by TheStreet on Sep 29, 2025, where it first appeared in the Investing section. Add TheStreet as a Preferred Source by clicking here.