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>>Crypto.com's CEO is calling on regulators to probe the unusual market liquidation event that occurred on October 10th.

Crypto.com's CEO is calling on regulators to probe the unusual market liquidation event that occurred on October 10th.

crypthub

2 days ago

Regulatory Scrutiny of Crypto Exchanges

Crypto.com CEO Kris Marszalek has called for a regulatory review of crypto exchanges following substantial market liquidations totaling $20 billion within 24 hours. He urged authorities to examine trading practices and compliance during the sell-off, questioning potential platform malfunctions. The focus should be on exchanges experiencing the largest liquidations and ensuring fair trading conditions. These events highlight the need for oversight within the cryptocurrency market.

Binance Technical Issues and User Losses

Binance is facing backlash due to several tokens depegging, leading to unexpected losses for traders. The exchange is reviewing affected accounts and promising compensation for losses caused by confirmed platform errors. A user reported a mistaken closure of a short position, resulting in significant losses, which Binance acknowledges as a technical error. Yi He, co-founder, offered an apology and clarified that market-related losses are not eligible for compensation.

Market Liquidations and Historical Context

Recent liquidations reached $19.31 billion, exceeding previous market downturns such as the COVID-19 crash and the FTX collapse by a significant margin. Crypto analyst Quinten François’ data shows this event was more than ten times larger than any prior wipeout. This underscores the severity of the recent market volatility and potential systemic risks.

Geopolitical Factors and Market Response

The market crash coincided with U.S. President Trump’s announcement of new tariffs on Chinese imports. This move, responding to China’s restrictions on rare earth mineral exports, introduced additional volatility. The combination of these factors has amplified concerns regarding the stability and transparency of the cryptocurrency market.