The post Crypto.com Chief Demands Regulatory Scrutiny Post-$20B Liquidation Crisis appeared on BitcoinEthereumNews.com.

Rongchai Wang
Oct 11, 2025 19:31

Crypto.com CEO Kris Marszalek urges global regulators to investigate exchanges after record $20B liquidations triggered by tariff turmoil. Details inside.

Historic $20 Billion Liquidation Event Sparks Regulatory Call From Crypto.com CEO Financial markets reeled Saturday as cryptocurrency exchanges collectively liquidated a staggering $20 billion in leveraged positions within 24 hours—a collapse exceeding both the FTX implosion and 2020 pandemic market crash combined. Crypto.com CEO Kris Marszalek has demanded immediate regulatory intervention, calling the event “the largest forced liquidation crisis in digital asset history” and urging authorities to scrutinize trading platforms for potential misconduct during extreme volatility. According to industry data, the unprecedented sell-off began Friday afternoon following former President Donald Trump’s announcement of 100% tariffs on Chinese imports, which ignited global risk-aversion. As equities and commodities plunged, crypto markets experienced violent cascades when key stablecoins and wrapped assets briefly depegged from their underlying values. Marszalek warned that exchanges appeared unable to handle the volatility surge, with several platforms reportedly freezing during critical moments. Platform Failures Under Scrutiny In a series of urgent posts on X, Marszalek questioned fundamental market integrity: “Regulators must investigate exchanges where liquidations spiked abnormally. Were users locked out during critical price moves? Were trade executions accurate? Did AML systems fail when most needed?” He specifically cited concerns about potential mismatches between exchange prices and global market indices during the crisis window. Data analytics from CoinGlass confirms Hyperliquid suffered the most severe impact with $10.31 billion in wiped positions, followed by Bybit ($4.65 billion) and Binance ($2.41 billion). Smaller platforms including OKX, HTX, and Gate.io recorded combined liquidations exceeding $1.8 billion. Industry observers note this single-day tally surpasses the $19 billion in user funds lost during the 2022 FTX collapse. Binance later acknowledged…

---

Filed under: News - @ October 12, 2025 3:44 am