Wintermute CEO Refutes Lawsuit Rumors After October Market Crash
Wintermute CEO Evgeny Gaevoy has publicly denied claims that the market maker intends to sue Binance for losses tied to the October 10 market crash. Rumors circulated widely on social media, but Gaevoy dismissed them as baseless on Monday, posting to X, We never had plans to sue Binance, nor see any reason to do it in future.
Rumors Traced to Social Media
The speculation began after the market downturn on October 10, which erased about $20 billion in leveraged positions across crypto assets. Industry discussions pointed to a potential auto-deleveraging risk mechanism failure on Binance during the event. One X user, WhalePump Reborn, claimed Wintermute was requesting compensation for unconfirmed losses, stating, Binance completely disagrees with the amounts Wintermute is asking for.
Gaevoy responded, calling the allegations "complete bullshit" and criticized those amplifying unverified information. WhalePump Reborn also alleged that several other trading firms might sue Binance, but these claims remain unverified.
Community and Market Response
Former Binance CEO urged his X followers, numbering over 10 million, to rely on official sources for information. The spreading of unfounded claims contributed to an atmosphere of fear, uncertainty, and doubt (FUD) in the market. Several influencers on X further amplified the rumors, despite the lack of supporting evidence.
In the aftermath, Wintermute was scrutinized for a transfer of over $700 million to a Binance wallet just hours before the major downturn. This drew speculation over their potential role in the events, though no credible links have been established.
Broader Market Impact
The crypto market capitalization dropped 3% to $3.65 trillion on the same day. Nearly $1.3 billion in leveraged positions were liquidated within 24 hours, which may have contributed to the decline. Analysts indicate there was no immediate catalyst, though the misinformation circulating about Wintermute likely played a part in market sentiment.
- Wintermute provides liquidity on Binance, supporting price stability.
- The firm has consistently denied any intention of legal action against Binance.
- Experts recommend verifying information with official channels amid market turbulence.
As of publication, Bitcoin prices remained above $100,000, with no official statements from Binance regarding the alleged lawsuit or compensation demands.
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