Evgeny Gaevoy denies claims that the market-making firm plans legal action against Binance following the October 10 flash crash that saw Bitcoin plunge over 15%.
Wintermute Rejects Binance Lawsuit Speculation
The head of Wintermute, one of the leading crypto market makers, has denied speculation that his firm plans to sue Binance following the October 10 market crash, when Bitcoin briefly dropped 15.2% to below $103,000.
Wintermute CEO Evgeny Gaevoy took to X on Monday to shut down what he described as “baseless rumors.” “We never had plans to sue Binance, nor see any reason to do it in future,” Gaevoy stated. He added, “I should probably ask to make a note of all the people spreading baseless rumors, but most have goldfish memory capacity, so I won’t.”
The remarks came after online speculation suggested Wintermute was seeking damages from Binance, alleging failures in the exchange’s auto-deleveraging system during the rapid sell-off.
What Triggered the Controversy
The October 10 crash saw Bitcoin fall from $121,560 to under $103,000 within hours, wiping out nearly $20 billion in leveraged positions across global exchanges. Reports claimed Wintermute’s liquidity provision was disrupted during the event.
An X account known as WhalePump Reborn alleged that Wintermute was preparing legal action against Binance to recover unconfirmed losses, stating the two parties disagreed on the compensation amount. Gaevoy swiftly dismissed the post, calling it “complete nonsense.”
Further claims that other trading platforms were planning lawsuits also lack evidence. No official documentation or credible statements have supported these allegations.
Binance and Market Reaction
Former Binance CEO Changpeng Zhao addressed the controversy, urging his 10.4 million followers to verify all information through official sources and not rely on social media speculation.
The false rumors amplified fear and uncertainty across the crypto community, coinciding with a 3% drop in the overall market capitalization to $3.65 trillion on Monday. Nearly $1.3 billion in leveraged positions were liquidated within 24 hours as volatility spiked.
Despite the speculation, analysts point to ongoing whale selling and macroeconomic pressure as the main factors behind the downturn.
Industry Confidence Remains Intact
While social media chatter fueled short-term volatility, Wintermute’s firm denial and Binance’s call for transparency have helped ease fears. Market experts emphasize that trust in verified information remains essential for navigating high-stakes crypto environments.
“False narratives can distort sentiment, but fundamentals always prevail,” Patel added.
For now, both Binance and Wintermute appear focused on maintaining market integrity rather than conflict — a sign of growing maturity within the digital asset space.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.