Crypto.com CEO Kris Marszalek has called for regulators to investigate exchanges that experienced the highest number of liquidations during the recent major crypto market crash. In a post on X on Oct. 11, Marszalek emphasized the need for regulators to conduct a thorough review of the practices of the top ten exchanges with the most liquidations in the preceding 24 hours.
Marszalek shared a list of exchanges that he believes require investigation. Hyperliquid led the way with $19.35 billion in liquidations, followed by Bybit and Binance with $10.31 billion and $4.5 billion in liquidations, respectively.
These top five exchanges accounted for a combined total of over $37 billion in liquidations within just 24 hours. Other exchanges on the list included OKX, HTX, Gate, CoinEx, Bitfinex, and Bitmex.
Key Areas for Regulators to Focus On
Marszalek highlighted several key aspects that regulators should review regarding the identified exchanges. These include investigating whether any of the exchanges experienced issues that prevented investors from trading.
Additionally, Marszalek raised concerns about the pricing accuracy of trades on these exchanges and emphasized the importance of monitoring trade activities and anti-money laundering programs. He also pointed out the need to ensure that there are no conflicts of interest within the internal trading teams of these exchanges, stating:
“With $20B in liquidations, a lot of users suffered. Regulatory bodies must protect consumers and uphold market integrity.”
Complaints from Investors
Following the market crash, several crypto investors voiced their frustrations on X, particularly regarding their experiences on Binance. Users reported difficulties executing trades and accessing certain features during the crash. One investor, known as ‘Cowboy,’ criticized Binance, calling them the “biggest scammers in crypto.”
Cowboy alleged that Binance restricted access to user accounts and funds during the crash, preventing investors from managing their positions effectively. He also mentioned the unavailability of limit orders and stop-loss functions, accusing Binance of maximizing profits during the liquidation event. Cowboy even suggested that Binance CEO Richard Teng could face legal consequences for the exchange’s actions.
Another user, ‘ElonTrades,’ highlighted how bad actors exploited a pricing flaw on Binance to trigger forced liquidations worth hundreds of millions of dollars. This manipulation caused stablecoins to depeg, resulting in significant losses for affected users.
Binance acknowledged the platform issues and promised to compensate affected users. Co-founder Yi He emphasized Binance’s commitment to addressing problems and improving their services in the future.
