Wintermute CEO Evgeny Gaevoy has refuted rumors that his market maker platform plans to sue Binance over losses incurred from the Oct. 10 market crash, which wiped out around $20 billion in leveraged positions across the market.
“We never had plans to sue Binance, nor see any reason to do it in future,” Gaevoy posted to X Monday, adding: “I should probably ask to make a note of all the people spreading baseless rumors, but most of people believing these have goldfish memory capacity, so I wont.”
Wintermute is an independent trading firm that provides liquidity on Binance’s platform, helping stabilize prices and improve market efficiency.
It has been claimed that Wintermute’s liquidity was affected by a failure in Binance’s auto-deleveraging risk mechanism during the Oct. 10 crash, which saw Bitcoin fall from $121,560 to below $103,000 after US President Donald Trump’s tariff announcement.
One X user, WhalePump Reborn, claimed that Wintermute was preparing a lawsuit seeking to be reimbursed for those unconfirmed losses, adding that: “Binance completely disagrees with the amounts Wintermute is asking for.”
It prompted Gaevoy to call them out, responding: “What a larp, all complete bullshit.”
WhalePump Reborn claims that several other crypto trading platforms are preparing to sue Binance; however, that claim also appears to lack merit.
Trust Official Sources, Says Changpeng Zhao
Former Binance CEO Changpeng Zhao weighed in on the matter — telling his 10.4 million X followers to always verify with “official sources.”
Several crypto influencers were seen spreading the rumors, which amplified the fear, uncertainty, and doubt (FUD) coming from WhalePump Reborn and a few other X accounts.
Despite the false rumors, Wintermute was accused of contributing to the Oct. 10 crash after transferring over $700 million to a Binance hot wallet just hours before the downturn.
Crypto Market Experiences Downturn
The crypto market fell 3% to $3.65 trillion on Monday. While there doesn’t appear to be a primary catalyst, the false Wintermute rumors and nearly $1.3 billion worth of leveraged positions being liquidated within 24 hours may have contributed to the drop.
Industry analysts have also noted that Bitcoin OG whales continue to sell with Bitcoin’s prices still above $100,000.