The SEC identified signs of price manipulation by anonymous social media users and temporarily suspended trading after QMMM Holdings Ltd. stock jumped nearly 1000% in less than three weeks. The company had previously announced plans to form a $100 million cryptocurrency treasury and enter the digital asset sector.
The company had announced plans to form a $100 million cryptocurrency treasury and enter the digital asset sector.
According to the regulator, in recent weeks unknown individuals had posted recommendations to buy QMMM shares on social media. Following these messages, the company’s stock rose by 959% compared to its price before the announcement of the cryptocurrency strategy.
Trading has been suspended until 11:59 PM ET on October 10. The agency clarified that this is a temporary measure.
QMMM, registered in the Cayman Islands and based in Hong Kong, had earlier announced a strategic move into the crypto industry. The company declared the creation of a “diversified crypto treasury” expected to reach $100 million and include Bitcoin, Ether, and Solana.
In a press release dated September 9, QMMM also mentioned the application of artificial intelligence and blockchain technologies in its development.
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