Regulatory Investigation Urged After $20 Billion Crypto Liquidations
- Crypto.com CEO Kris Marszalek called for a regulatory investigation into exchanges after $19.31 billion in liquidations occurred within a single day.
- Hyperliquid led the liquidations with $10.31 billion, followed by Bybit at $4.65 billion and Binance at $2.41 billion.
- Binance confirmed that a price depeg incident involving USDe (USDE) led to forced liquidations for some users, prompting a review of affected accounts.
- The recent market crash was triggered by US President Donald Trump’s announcement of plans to impose tariffs on Chinese imports starting November.
- This liquidation event surpassed previous downturns, eclipsing losses from the COVID-19 crash ($1.2 billion) and the FTX collapse ($1.6 billion).
Marszalek emphasized the need for regulators to investigate whether trading platforms acted fairly during this significant market downturn, particularly regarding asset pricing and operational integrity.
The call for scrutiny follows Binance’s acknowledgment of user complaints related to platform errors amidst significant market fluctuations, highlighting the impact of nearly $20 billion in liquidations on traders’ positions.(Source)
