Crypto CEO Marszalek urges probe into exchanges after liquidations

Crypto.com Chief Executive Kris Marszalek on Saturday urged regulators to investigate cryptocurrency exchanges after a record wave of liquidations over the previous 24 hours wiped out roughly $19 billion to $20 billion in leveraged positions, according to market trackers. The selloff, centered on Oct. 10 and 11, liquidated about 1.6 million traders and concentrated most heavily on offshore derivatives venues, with Hyperliquid, Bybit and Binance accounting for the largest reported shares of the losses.

Marszalek asked authorities to scrutinize the trading platforms that recorded the most liquidations and to determine whether any had interrupted trading, mispriced assets, or lacked adequate anti-manipulation and compliance controls during the crash. In his social media post he asked pointed operational questions, writing, "Were all trades priced correctly and in line with indexes?" He added that protecting consumers and market integrity is a central role for regulators.

Binance acknowledged platform-related issues that contributed to forced liquidations for some users, saying a price depeg involving tokens tied to the Ethena project — USDe, BNSOL and WBETH — had triggered...