Evgeny Gaevoy, the CEO of crypto market maker Wintermute, has firmly dismissed rumors suggesting his company is preparing to take legal action against Binance in relation to the violent market movements on October 10. Gaevoy took to X (formerly Twitter) to clarify Wintermute’s position, emphasizing that there has never been any intention to sue Binance. He attributed the renewed speculation to the recycling of rumors, comparing it to having a “goldfish memory.”
This statement follows significant volatility in the crypto market, which led to the liquidation of over $20 billion worth of leveraged positions. The flash crash, which resulted in drastic price swings and unprecedented liquidations, triggered speculation that market makers, including Wintermute, might seek legal action or compensation for the unexpected losses they suffered during the event.
Market Conditions Led to Extreme Liquidations
The chaotic trading environment on October 10 saw substantial market dislocations, including synthetic assets losing their pegs and some orders being executed at what industry insiders described as “ridiculous” levels. This market disruption prompted online discussions about the possibility of affected firms taking legal steps, with Binance named as one of the platforms under scrutiny.
Wintermute’s Gaevoy had previously described some of the liquidation strikes as occurring at “very weird” levels. Despite these extreme conditions, he reassured that the firm remains operational and stable. He pointed out that the event was an anomaly in the market, and Wintermute’s focus remained on continuing its operations rather than engaging in litigation.
Binance’s Response to the Crash
After the flash crash, Binance acted swiftly by compensating traders who were impacted by the event. The exchange announced that it paid out $283 million in compensation to those affected by synthetic assets losing their pegs. Additionally, Binance launched a $400 million rescue program to help institutional clients regain their footing in the market, including a $100 million low-interest loan facility. While it is unclear whether Wintermute was part of the compensation program, the firm’s response clarifies that it is not pursuing legal action against Binance.
Gaevoy’s recent post has effectively closed the door on any further speculation about a lawsuit. He reiterated that Wintermute’s strategy moving forward is to continue operating, leaving behind the volatility of the October crash.