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when

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<ul>
 <li>CZ responds to QMMM’s alleged rug pull with key safeguards.</li>
 <li>Advocates third-party custody for all DAT investments.</li>
 <li>YZi Labs sets strict rules for future BNB DAT investment.</li>
</ul>
<p>Following the alleged exit scam by QMMM, which claimed to be the first DAT (Digital Asset Treasury) company, Binance founder Changpeng Zhao (CZ) has issued a strong warning to the crypto community. He emphasized the urgent need for stricter transparency and security measures, especially when it comes to handling investor funds in the Digital Asset Treasury sector.</p>
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<p>QMMM’s sudden disappearance has raised concerns among retail and institutional investors alike. With no proper oversight or asset custody mechanisms in place, this incident underlines the growing risk of unregulated financial practices in the crypto industry.</p>
<h2 class="wp-block-heading" id="strong-cz-recommends-third-party-custodians-and-audits-strong"><strong>CZ Recommends Third-Party Custodians and Audits</strong></h2>
<p>In response, CZ took to Twitter to suggest that all DAT companies should store user funds with third-party crypto custodians rather than handling them internally. This approach would ensure that the assets are secure and verifiable by independent entities.</p>
<p>He also highlighted the importance of investor-led audits during the account setup process. According to CZ, these two safeguards—independent custody and early-stage auditing—should be non-negotiable for any crypto firm managing public or investor assets.</p>
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter">
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  <blockquote class="twitter-tweet">
   <p>In response to the incident of “the first DAT company QMMM allegedly running away,” CZ tweeted that all crypto DAT (Digital Asset Treasury) companies should use third-party crypto custodians and have account setup audited by investors. This is a prerequisite for any BNB DAT…</p>— Wu Blockchain (@WuBlockchain) <a href="https://twitter.com/WuBlockchain/status/1979065182266757501?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">October 17, 2025</a>
  </blockquote>
 </div>
</figure>
<h2 class="wp-block-heading" id="strong-yzi-labs-sets-terms-for-bnb-dat-investment-strong"><strong>YZi Labs Sets Terms for BNB DAT Investment</strong></h2>
<p>Backed by CZ’s opinion, YZi Labs has announced that it will require strict adherence to these rules for any future <strong>BNB DAT investment</strong>. The firm stated it will not invest in DAT companies that fail to use third-party custodians or do not allow investor-initiated audits.</p>
<p>This move may set a new industry standard, helping to protect funds and restore trust among investors in the evolving DAT ecosystem. It also sends a clear message: security and transparency are essential for the future of decentralized financial treasuries.</p>
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<p>The post <a rel="noopener noreferrer nofollow" href="https://coinomedia.com/bnb-dat-investment-rules/">CZ Urges Crypto Custody Rules After QMMM Collapse</a> appeared first on <a rel="noopener noreferrer nofollow" href="https://coinomedia.com">CoinoMedia</a>.</p>

CZ Urges Crypto Custody Rules After QMMM Collapse

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