Kris Marszalek urges oversight into trading practices as exchanges face scrutiny for record losses
The crypto market’s most dramatic sell-off to date has sparked a call for action from Crypto.com CEO Kris Marszalek, who urged regulators to investigate exchanges involved in the historic $20 billion liquidation wave that shook digital asset markets this week.
In a post shared on Saturday, Marszalek questioned whether trading platforms “slowed down, mispriced assets, or failed to maintain compliance controls” as billions in leveraged positions were wiped out within hours. He added, “Regulators should look into the exchanges that had most liquidations in the last 24 hours. Were all trades priced correctly and in line with indexes?”
According to CoinGlass data, the liquidation leaderboard was dominated by Hyperliquid ($10.31 billion), followed by Bybit ($4.65 billion) and Binance ($2.41 billion). Other major platforms including OKX, HTX, and Gate saw smaller losses, ranging from $1.2 billion to $260 million.
“The magnitude of this liquidation exceeds anything we’ve seen in crypto’s history — even the FTX or COVID-era crashes,” noted analyst Quinten François, comparing the event’s $19.3 billion total to the $1.6 billion liquidations during FTX’s collapse.
Binance, which came under particular scrutiny, confirmed that a price depeg involving Ethena’s USDe, BNSOL, and WBETH had triggered forced liquidations for some users. The exchange said it is reviewing affected accounts and will offer “appropriate compensation” where verified platform errors occurred.
Binance co-founder Yi He acknowledged user complaints and apologized, attributing the disruption to “significant market volatility and a surge in activity.” However, she clarified that only losses caused by system faults would be eligible for reimbursement.
The crash followed U.S. President Donald Trump’s announcement of 100% tariffs on all Chinese imports, a move that rattled global markets and intensified risk aversion. China, in turn, imposed new export restrictions on rare earth minerals, deepening concerns over supply chains and economic retaliation.
The combination of geopolitical shock and exchange instability has ignited fresh debate over market transparency, with regulators now facing growing pressure to reassess how digital asset platforms handle extreme volatility.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.