'No Plans to Sue Binance,' Wintermute Rumors Clarified

Binance Not Sued: CEO Dismisses Wintermute Rumors

Wintermute CEO Evgeny Gaevoy has pushed back against rumors that his market maker platform plans to sue Binance over losses incurred from the October 10 market crash. The crash resulted in the liquidation of around $20 billion in leveraged positions across the space.

These Wintermute rumors arose from concerns about a debacle similar to 2022. As per reports, the platform’s liquidity was impacted due to a supposed failure in the exchange's auto-deleveraging risk mechanism during the October 10 crash.

Evgeny Gaevoy Dismisses Wintermute Rumors

In a recent X post, Evgeny Gaevoy dismissed talks about his platform suing crypto exchange Binance. 

He wrote,

“Literally nothing changed since this tweet and we never had plans to sue binance, nor see any reason to do it in future 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.”

Social media platforms like X were abuzz with speculation and discussion about the platform potentially suing Binance, following the cryptocurrency crash. One X user alleged that the market maker was gearing up for a lawsuit to recover unconfirmed losses, with the exchange reportedly disputing the claimed amounts. He added, “Binance completely disagrees with the amounts Wintermute is asking for.” However, Gaevoy swiftly responded, rejecting these claims and stating, “What a larp, all complete bullshit.”

Crypto Market Fall

The crypto industry dipped 3% to $3.65 trillion on Monday, with no clear catalyst emerging. The downturn may have been exacerbated by false Wintermute rumors and the liquidation of nearly $1.3 billion in leveraged positions within a 24-hour period

As one of Binance's largest liquidity providers, the firm had transferred $700 million onto the exchange mere hours before the fall. According to CEO Evgeny Gaevoy, the firm subsequently withdrew a similar amount. After the industry crash, the CEO stated on Saturday that the firm was "perfectly fine," addressing concerns about the firm's stability following the liquidation event.

Claims of Multiple Lawsuits Remain Unverified

Additionally, the X user also claimed that several other crypto trading platforms are preparing to sue CZ's company. But the argument appears to be unsubstantiated.

Founder Changpeng Zhao chimed in, cautioning his 10.4 million X followers to trust official sources. Despite this caution, the speculations gained traction as several crypto influencers shared and amplified the claims, further fueling the fear, uncertainty, and doubt (FUD).