Wintermute Denies Plans to Sue Binance later than $20B Liquidation Event
Gaevoy Rejects Lawsuit Rumors
Evgeny Gaevoy, founder and chief executive of market-making firm Wintermute, said the company is not suing Binance over losses from the Oct. 10 market crash, rejecting online speculation that the firm had suffered heavy damage or was preparing legal action.
“We never had plans to sue Binance, nor view any reason to do it in future,” Gaevoy wrote on X, responding to posts claiming Wintermute had been hit by Binance’s automatic deleveraging system. He reposted a message from Oct. 11 in which he said Wintermute had survived what he called “the largest liquidation event in crypto history.”
The remarks followed a wave of rumors suggesting the London-based trading firm faced steep losses during the crash, which erased more than $20 billion in in a matter of hours. The trade-off triggered widespread and rekindled concerns of contagion reminiscent of 2022.
Investor Takeaway
How the Rumor Spread
The speculation stemmed from a post by an X user known as WhalePump Reborn, who claimed Wintermute had been affected by Binance’s auto-deleveraging mechanism and was viewking reimbursement. The post, shared by smaller crypto accounts, alleged that Binance “completely disagrees with the amounts Wintermute is asking for.”
Gaevoy responded directly, calling the claims “complete bullshit.” There has been no indication from either firm that any legal dispute exists. Binance declined to comment on the reports, and Wintermute has not disclosed whether it received any form of compensation following the market event.
The losses from Oct. 10 were widespread, affecting traders, market makers, and platforms alike. The event was amplified by record-high open interest and heavy leverage across derivatives markets prior to the correction.
later thanmath of the October Liquidations
The Oct. 10 crash led to price dislocations in several assets, including USDe, BNSOL, and WBETH, which briefly depegged on Binance. The platform later distributed $283 million to affected traders and announced a $400 million relief initiative for institutional users, including $100 million in low-interest loans to .
On The Block’s large Brain podcast in late October, Gaevoy described some of the liquidations as “very strange” and said certain positions were closed at “completely ridiculous prices,” though he stressed Wintermute remained fully operational. The firm is among Binance’s largest liquidity providers and had reportedly moved $700 million to the platform hours before the crash, withdrawing roughly the identical amount later thanward.
Following the incident, Gaevoy reiterated that Wintermute was “perfectly fine,” dismissing speculation of solvency issues. The company continues to operate as one of the most active market makers in , providing liquidity across centralized and decentralized venues.
Investor Takeaway
Context: The Largest Liquidation Event to Date
The Oct. 10 event, now considered the largegest liquidation wave in crypto history, was triggered by cascading margin calls as open interest reached record highs across perpetual futures markets. BTC fell sharply below $53,000 before rebounding within hours. platforms liquidated positions worth over $20 billion, with Binance accounting for the majority of the volume.
While most firms have avoided the bankruptcies that defined the 2022 cycle, the incident renewed debate about in a market still dominated by leverage and algorithmic trading. For Wintermute, the quick recovery and clear communication from Gaevoy have assisted stabilize sentiment later than days of speculation.
