On October 10, 2025, Crypto.com CEO Kris Marszalek called for a global regulatory probe into cryptocurrency exchanges, alleging potential market manipulation following $20 billion in liquidations across major platforms like Binance and Coinbase. The massive liquidations, triggered by a sharp 15% Bitcoin price drop from $124,000 to $98,500 in early October, have raised concerns about transparency and trading practices. Marszalek’s call aligns with India’s ongoing tax probe into 400 Binance traders for $42 million in evasion, highlighting global scrutiny of crypto markets. In this article, we analyze Marszalek’s demand, the liquidation event, and its implications for the crypto ecosystem, with a focus on India. CoinDesk
Details of the $20B Liquidations and Marszalek’s Call
The $20 billion liquidation event and Marszalek’s subsequent demand for a probe have sent shockwaves through the crypto industry:
- Liquidation Scale: $20 billion in leveraged positions were wiped out across exchanges in the first week of October 2025, with Binance accounting for 40% ($8 billion) and Coinbase 25% ($5 billion).
- Market Trigger: Bitcoin’s 15% drop to $98,500, coupled with a 12% decline in Ethereum, sparked margin calls and forced liquidations.
- Marszalek’s Allegations: The Crypto.com CEO alleges that some exchanges may have manipulated order books or failed to manage risk, exacerbating the liquidation cascade.
- Probe Demand: Marszalek urged regulators like the SEC, CFTC, and global bodies to investigate exchange practices, including wash trading and leverage limits.
This follows a $4.5 million outflow from Bitcoin ETFs on October 10, snapping a 9-day inflow streak, signaling broader market unease.
Reasons Behind the Liquidations and Probe Call
Several factors contributed to the liquidations and Marszalek’s push for scrutiny:
- Market Volatility: Geopolitical tensions, including Trump’s 100% tariffs on Chinese goods effective November 1, 2025, triggered a risk-off sentiment, impacting crypto prices.
- High Leverage: Excessive leverage (up to 100x on some platforms) amplified losses, with 60% of liquidations tied to over-leveraged retail traders.
- Transparency Issues: Lack of clarity on exchange risk management and order book depth fueled suspicions of manipulation, prompting Marszalek’s call.
- Regulatory Context: India’s probe into 400 Binance traders and China’s Qualcomm investigation reflect a global push for tighter crypto oversight.
Implications for the Crypto Market and India
The liquidations and probe demand have significant ramifications:
- Market Stability: The $20 billion wipeout dented investor confidence, with Bitcoin’s market cap dropping to $1.9 trillion, a 10% weekly loss.
- Regulatory Pressure: A global probe could lead to stricter leverage caps and KYC rules, impacting exchanges like Binance, already under India’s $42 million tax scrutiny.
- India’s Crypto Ecosystem: India’s #1 crypto adoption ranking, with $1 billion daily stablecoin inflows, faces risks of reduced retail participation if regulations tighten.
- Exchange Practices: Platforms may adopt transparent risk systems, as HashKey’s CEO suggested for resilient crypto treasuries.
The Bigger Picture: Global Crypto Oversight
Marszalek’s call aligns with 2025’s regulatory wave, from India’s Binance probe to OpenAI’s Google antitrust case. India’s economic resilience, with family businesses driving 70% of GDP and festive e-commerce surging 115%, supports crypto growth, but global volatility, like Trump’s tariffs, poses challenges. As Abu Dhabi invests $3.5B in AI, crypto’s regulatory path will shape its mainstream adoption.
What’s Next for the Crypto Market?
Key developments to monitor:
- Regulatory responses to Marszalek’s probe call, expected by Q1 2026.
- Bitcoin’s price recovery, with analysts eyeing $110,000 by year-end.
- Impact on India’s crypto traders amid DGGI’s Binance investigation.
- Exchange reforms to prevent future liquidation cascades.
Conclusion
Crypto.com CEO Kris Marszalek’s demand for a probe into exchanges after $20 billion in liquidations in October 2025 highlights concerns over market manipulation and risk management. As India navigates its Binance tax probe and global markets face trade tensions, the crypto industry braces for tighter oversight. The outcome will shape trust and stability in the $2 trillion crypto market.
