Michaela
Kris Marszalek, the CEO of Crypto.com, has called on regulators to investigate crypto exchanges following a weekend market crash that wiped out roughly $20 billion in leveraged positions.
Key points:
- Crypto.com CEO Kris Marszalek has urged regulators to investigate crypto exchanges after a $20 billion market wipeout, citing potential technical and compliance failures.
- Binance and Hyperliquid led in liquidations, with $14.02 billion and $10.24 billion lost respectively, as Bitcoin and Ethereum saw sharp declines before rebounding.
- The recent market crash renewed scrutiny of centralized exchanges’ transparency and risk controls, as Binance co-founder Yi He apologized and promised compensation to affected users.
In a post on X, Marszalek urged regulators to launch a comprehensive review of the exchanges that saw the highest number of liquidations during the 24-hour market crash. He questioned whether these platforms may have experienced technical slowdowns, mispriced assets, or neglected key safeguards such as anti-manipulation and compliance controls amid the volatility.
“$20B in liquidations, a lot of users got hurt. The job of regulatory bodies is to protect the consumers and assure market integrity,” Marszalek wrote in his Saturday X post.
Data from CoinGlass shows that Binance recorded the highest liquidation volume, with approximately $14.02 billion wiped out, followed by Hyperliquid with $10.24 billion. Other major exchanges, including Bybit, OKX, and HTX, also faced significant losses during the sell-off.
Ethereum and Bitcoin were the hardest hit, with liquidations totaling $7.38 million and $1.69 million, respectively. Analysts described the event as one of the year’s most intense market corrections, spotlighting the persistent volatility across the digital asset landscape.
Bitcoin fell sharply from above $122,000 on Friday morning to around $113,600, erasing all gains made since August. However, the leading cryptocurrency has since rebounded, rising 4.5% over the past 24 hours to trade just above $115,000 at the time of writing, according to CoinMarketCap data.
Binance co-founder Yi He issued a public apology acknowledging user complaints following the recent market disruptions. “If you have incurred losses attributable to Binance, please contact our customer service to register your case. We will review your account activity individually, analyze the situation, and provide compensation accordingly,” He wrote.
“The reason Binance is Binance is that we never shy away from problems. When we fall short, we take responsibility—there are no excuses or justifications. We are committed to serving every user to the best of our ability, and we will manage what we are responsible for,” the Binance co-founder added.
The weekend’s market crash has reignited debate over the stability and transparency of centralized exchanges, raising fresh questions about whether the crypto industry is truly prepared for moments of extreme volatility.
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Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
