Crypto.com Chief Calls for Investigation Following $20 Billion in Liquidations

Kris Marszalek, the CEO of Crypto.com, has called for a regulatory investigation into exchanges that incurred significant losses after a staggering $20 billion in crypto liquidations occurred over the last 24 hours.

In a post on X this Saturday, Marszalek urged regulators to “conduct a comprehensive review of trading practices,” questioning whether exchanges had delayed transactions, mispriced assets, or neglected to enforce anti-manipulation and compliance measures during the downturn.

“Regulators need to scrutinize the exchanges that experienced the highest number of liquidations in the past 24 hours,” he stated. “Did any of them come to a standstill, effectively preventing users from trading? Were all trades accurately priced in accordance with the indexes?”

Data from CoinGlass indicates that Hyperliquid led in liquidations, totaling $10.31 billion in wiped-out positions, followed by Bybit at $4.65 billion, and Binance at $2.41 billion. Other notable platforms like OKX, HTX, and Gate experienced smaller totals, at $1.21 billion, $362.5 million, and $264.5 million, respectively.

Related: Crypto Sentiment Index Plummets After Trump’s Tariff Announcement

Binance confirms token depeg caused user liquidations

In an announcement, Binance confirmed that a depeg incident involving Ethena’s USDe (USDE), BNSOL, and WBETH resulted in forced liquidations for certain users. The exchange stated it is reviewing affected accounts and will implement “appropriate compensation measures.”

The declaration followed reports from users who lost funds due to errors on the platform. One Binance trader reported that the exchange entirely closed their short position while leaving their long open, resulting in total losses. The user insisted that the issue was not attributable to auto-deleveraging (ADL) and noted that similar trades on other platforms, like Lighter and Extended, remained intact through the crash.

Yi He, co-founder of Binance, also acknowledged user grievances in a public apology, attributing them to “significant market volatility and a large influx of users.” She stated that Binance would compensate verified cases where platform errors led to losses but clarified that “losses arising from market volatility and unrealized profits are not eligible.”

According to data compiled by crypto analyst Quinten François, the recent crypto market wipeout surpasses any previous downturn. The $19.31 billion in liquidations exceeds ten times the losses experienced during the COVID-19 crash ($1.2 billion) and the FTX collapse ($1.6 billion).

Related: Bitcoin might experience volatility amid Trump tariff anxieties

Trump announces 100% tariffs on Chinese imports

The recent market collapse followed US President Donald Trump’s announcement of plans to impose 100% tariffs on all Chinese imports starting November 1 in response to China’s recent export restrictions on rare earth minerals.

China, supplying around 70% of the world’s rare earth minerals, recently mandated that any product containing over 0.1% of Chinese rare earths must obtain an export license. This regulation is set to go into effect on December 1.