Kris Marszalek, the CEO of Crypto.Com, is pushing government officials to probe exchanges that had huge liquidations in the recent market crash. In a X statement, he provided a chart of the top 10 exchanges by liquidation volume, with Hyperliquid, Bybit, and Binance at the top of the list. These platforms alone experienced more than $37 billion in positions being wiped out in 24 hours.
Fears on Market Integrity.
Marszalek emphasized that the regulatory bodies should investigate the position of transparency in the operations of the exchange. This involves accuracy in pricing, reliability in trade execution and internal risk controls. He also questioned about the possible conflict of interest in the event that the internal trading teams are not well segregated with the operations of the platform.
Allegations Leveled at Binance.
Merchants have complained especially against Binance. During the crash, users were unable to control their positions to take advantage of opportunities to protect or reprice assets. Others even accuse deliberate operation of pricing systems to execute liquidations. A user boasted that USDe had been artificially depegged. Because of exploiters who had been working on the inner price structure of Binance.
Spotlight on Regulations Could Get Even Tighter.
The appeal by Marszalek puts a strain on regulators to investigate systemic weaknesses within crypto platforms. Losses in billions and broken trust among users mean that more scrutiny may alter the standards of operations and responsibility. Binance has already admitted technical problems when the crash has happened. Furthermore, they stated that they will compensate, however, the question of the fairness of the exchanges is not yet exhausted.
