• Crypto.com CEO Kris Marszalek has called for a formal regulatory probe into major exchange liquidations exceeding $20 billion.
• The move follows rising concerns about market manipulation and transparency across global trading platforms.
• The incident highlights renewed urgency for clearer global crypto trading oversight and exchange accountability.

Crypto.com CEO Kris Marszalek publicly called for regulators to open an investigation into large exchanges after a catastrophic $20 billion of 24-hour liquidations. In an X post, Marszalek asked whether exchanges had acted unfairly by delaying trades, asset mispricing, or internal agreement failures during the chaos.

Liquidation Data & Exchange Breakdown

Analytics from CoinGlass indicate Hyperliquid (HYPE) topped all exchanges with liquidations at $10.31 billion, followed by Bybit at $4.65 billion and Binance at $2.41 billion. Other exchanges such as OKX, HTX, and Gate also experienced massive losses ($1.21 billion, $362.5 million, $264.5 million).

Binance (BNB) subsequently confirmed that a price depeg incident with tokens such as USDe, BNSOL, and WBETH caused forced liquidations. The exchange indicated it would audit impacted accounts and consider “appropriate compensation measures,” although it noted losses from sheer market volatility would not qualify.

A user reported Binance (BNB) to have completely closed out their short position but left their long position open, a move they attribute not to auto-deleverage mechanisms but perhaps some system glitch.

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Support from the Community & Industry Voices

Marszalek’s efforts have gained support from others within the cryptocurrency community. Specifically, trader James Wynn endorsed the demand for regulation, acknowledging that big exchanges like HYPE will inevitably have more liquidations but contending that the volatility still indicates a need for transparency and fairness.

Marszalek’s message includes sharp criticism of exchange practices:

“Regulators should look into the exchanges that had most liquidations … Any of them slowing down to a halt, effectively not allowing people to trade? Were all trades priced correctly and in line with indexes?”

Background: Previous Crypto.com Investigation & Regulation Backdrop

Earlier this year in 2025, Crypto.com had announced that the U.S. SEC shut down its investigation into the platform without enforcement action taken.

But the $20B liquidation debacle and demands for investigating exchange behavior are a different sort of publicity, one that does not target corporate behavior but rather market integrity and exchange accountability.

Separately, Crypto.com has also faced scrutiny in recent months: blockchain investigator ZachXBT has challenged CEO Marszalek’s claims about past data leaks, alleging the scope of exposure was larger than disclosed

Implications

If regulators get involved, this might result in new requirements for the way exchanges handle extreme volatility, trading speed of processing, and order book integrity in crashes.

Exchanges can be compelled to offer audit trails, real-time surveillance, or more robust system protection against manipulative activity or unfair execution in stress events.

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