Tuesday Nov 4 2025 04:10
2 min
Wintermute CEO Evgeny Gaevoy has definitively stated that there are no plans to pursue legal action against Binance following market turbulence on October 10. This period saw approximately $20 billion in leveraged positions liquidated across the market.
Gaevoy addressed the rumors via a post on X (formerly Twitter) on Monday, stating, "We never had plans to sue Binance, nor see any reason to do it in the future." He further commented, "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 won't.""
Wintermute operates as an independent trading firm, providing liquidity on the Binance platform, which contributes to price stabilization and overall market efficiency. Claims arose suggesting Wintermute's liquidity was negatively impacted by a failure in Binance’s auto-deleveraging risk mechanism during the October 10 volatility. Bitcoin experienced a decline from $121,560 to below $103,000 following an announcement related to tariffs by then-US President Donald Trump.
An X user, operating under the name WhalePump Reborn, asserted that Wintermute was preparing a lawsuit seeking reimbursement for alleged losses, further claiming that "Binance completely disagrees with the amounts Wintermute is asking for.” Gaevoy responded, dismissing the claims as "complete bullshit.”
WhalePump Reborn also alleges that several other crypto trading platforms are preparing to sue Binance. However, these claims also appear unsubstantiated.
Former Binance CEO Changpeng Zhao addressed the situation, advising his 10.4 million X followers to always verify information with "official sources.”
Several crypto influencers were observed amplifying the rumors, contributing to the spread of fear, uncertainty, and doubt (FUD) originating from WhalePump Reborn and other X accounts.
Despite the false rumors, Wintermute faced accusations of contributing to the October 10 market downturn after transferring over $700 million to a Binance hot wallet just hours before the decline.
This news arrives as the broader crypto market experienced a 3% decline to $3.65 trillion on Monday. While a singular catalyst is not apparent, the spread of false rumors regarding Wintermute and the liquidation of approximately $1.3 billion in leveraged positions within a 24-hour period may have contributed to the market's downturn.
Industry analysts have also noted continued selling pressure from early Bitcoin adopters, despite Bitcoin prices remaining above $100,000.
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