Kris Marszalek, the co-founder and CEO of the Crypto.com exchange, urged the regulatory bodies to probe crypto exchanges that saw largest liquidations in the last 24 hours.

It should be investigated if these exchanges are fully Chinese walled or they slowed down to halt operations, he wrote on X on Oct. 11.

Regulators should look into the exchanges that had most liquidations in the last 24h and conduct a thorough review of fairness of practices. Any of them slowing down to a halt, effectively not allowing people to trade? Were all trades priced correctly and in line with indexes?… pic.twitter.com/UCD6iKuKFQ

— Kris | Crypto.com (@kris) October 11, 2025

A record $20 billion in trading positions got wiped out from the crypto market in a span of 24 hours in the wake of President Donald Trump’s shocking announcement to impose 100% tariff on China.

Related: What is Crypto? Cryptocurrency explained

Among the crypto exchanges that saw the most liquidation during the latest crash are:

· Hyperliquid - $10 billion

· Bybit - $4.65 billion

· Binance - $2.4 billion

· OKX - $1.21 billion

Crypto.com co-founder asked the authorities to conduct “a thorough review of fairness of practices” at these crypto trading exchanges.

Authorities should probe if they halted operations and effectively didn’t let users trade, he said. It should also be probed if these platforms mispriced crypto assets and were able to maintain anti-money laundering (AML) standards during the crypto market rout, he added.

· Crypto markets violently crash after Trump's latest tariffs

· Over $19 billion liquidated in worst crypto crash since COVID

· Crypto trader bags $160M by shorting ahead of Trump’s China tariff

A major concern that Marszalek raised is whether the internal teams at these crypto exchanges are fully Chinese-walled.

For those unaware, the term hasn’t got anything to do with any kind of physical walls between countries.

A Chinese wall is, in fact, an ethical concept in finance. It refers to an ethical wall or an information barrier that must exist between different teams at a business to prevent conflicts of interest.

In simple terms, a business enterprise must ensure that no sensitive or confidential information flows between departments that might have conflicts of interest. The most common example of a Chinese wall is one between the trading desk and the banking team with access to confidential information to restrict incidents of insider trading.

“$20B in liquidations, a lot of users got hurt.”

Marszalek urged the authorities to protect customers and assure market integrity as the crypto market saw its worst crash since COVID-19.

At the time of writing, Bitcoin was exchanging hands at $109,955.17, Ethereum at $3,673.14, and XRP at $2.34.

The total crypto market cap stood at $3.65 trillion, down more than 5.5% in the last 24 hours.

This story was originally reported by TheStreet on Oct 12, 2025, where it first appeared in the Policy section. Add TheStreet as a Preferred Source by clicking here.