SEC suspends QMMM trading over possible social-media manipulation

The U.S. Securities and Exchange Commission suspended trading in QMMM Holdings on Monday for 10 trading days, citing potential market manipulation after the Hong Kong based company’s stock rose sharply following an announcement that it would build a crypto analytics platform and use an initial $100 million to buy Bitcoin, Ether and Solana. The pause will remain in effect until October 10 while regulators investigate whether coordinated social media promotions artificially inflated the stock’s price and volume.

In a notice, the SEC said, "The Commission temporarily suspended trading in the securities of QMMM because of potential manipulation in the securities of QMMM effectuated through recommendations, made to investors by unknown persons via social media to purchase the securities of QMMM, which appear to be designed to artificially inflate the price and volume of the securities of QMMM." The regulator alleges the promotions were made by unidentified individuals and not necessarily by company insiders.

QMMM’s shares have surged in recent weeks. The stock closed at $119.40 on Friday after trading as low as about $6.50 at the start of September and briefly reaching an intraday...