The CEO of the popular crypto exchanges wants answers from regulators to what happened on Friday evening and Saturday morning.
Recall the events that transpired at the end of the business week after US President Donald Trump imposed a new set of tariffs on China. Bitcoin and essentially all altcoins crashed by double-digits, which led to over 1.6 million traders getting wrecked in the span of less than 24 hours.
In what became a record-setting liquidation event, more than $19 billion was wrecked within this timeframe. However, the actual numbers could be a lot worse, according to multiple reports on X.
People continue to speculate that large CEXes are underreporting the true liquidation data, and that a big industry name blew up. What we know for certain so far is that some altcoins crashed by up to 99.9% on Binance (such as Atom), while the majority dumped by 60%-70%, which is a lot worse than previous instances.
Kris Marszalek, the CEO of Crypto.com, urged regulators to take a good look into what happened during those hours, as some exchanges failed to execute orders for up to 120 minutes at a time. He believes watchdogs need to “conduct a thorough review of fairness of practices.”
He added that these exchanges need to answer some valid questions for the millions of users who got wrecked, including:
“Were all trades priced correctly and in line with indexes? What’s the setup for trade monitoring and AML programs? Are their internal trading teams fully Chinese-walled? $20B in liquidations, a lot of users got hurt. The job of regulatory bodies is to protect the consumers and assure market integrity.”
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