According to Marszalek, regulators need to review several aspects of the above-named exchanges. For instance, authorities should consider digging into whether any of the exchanges faltered to the point where investors could not trade.
Similarly, Marszalek also questioned whether these exchanges priced all trades correctly and “in line with indexes.” The exchanges’ trade monitoring and anti-money laundering programs also require investigation, he noted.
Another aspect of the probe should be whether the internal trading teams of the exchanges have a full Chinese-wall to ensure there is no conflict of interests, Marszalek wrote. He added:
“$20B in liquidations, a lot of users got hurt. The job of regulatory bodies is to protect the consumers and assure market integrity.”
Several crypto investors took to X to complain about facing challenges while trading during the crash on Saturday.
Cowboy alleged that Binance froze users out of their accounts during the crash and prevented investors from accessing their funds. Limit orders and stop-loss functions were also unavailable during the crash, which ensured that Binance “maximized profits during the largest liquidation event in history,” he noted, adding:
“By blocking users from managing their positions or “longing the bottom,” Binance effectively turned a market meltdown into their own profit machine.”
ElonTrades wrote:
“What looked like chaos was actually a coordinated exploitation of Binance’s internal pricing system, amplified by a macro shock and systemic leverage.”
Binance co-founder Yi He noted:
“The reason Binance is Binance is that we never shy away from problems. When we fall short, we take responsibility—there are no excuses or justifications.”
