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Wintermute CEO Evgeny Gaevoy has denied rumors that his agency plans to sue crypto alternate Binance for losses incurred through the Oct. 10 flash crash.
“We by no means had plans to sue Binance, nor see any purpose to do it in future,” the CEO wrote on X. “I ought to in all probability ask to make an observation of all of the folks spreading baseless rumors, however most of individuals believing these have goldfish reminiscence capability, so I gained’t.”
The rumours emerged after posts on X alleged that Wintermute, a market making and buying and selling agency that gives liquidity on Binance’s platform, suffered heavy losses through the flash crash attributable to a failure in Binance’s auto-deleveraging mechanism.
X Consumer Claimed Wintermute Prepared To Take Authorized Motion
X consumer “WhalePump Reborn” claimed that Wintermute was gearing as much as file a lawsuit in opposition to Binance to be reimbursed for the unconfirmed losses.
“Wintermute is suing Binance,” the X consumer mentioned. “They misplaced a whole bunch of hundreds of thousands.”
YES.
Wintermute is suing Binance.
And they aren’t the one ones that acquired rekt.
They misplaced a whole bunch of hundreds of thousands.
I’ve all of the names of who’s about to explode.
It isn’t going to be fairly.
Except CZ finds a means for compensation, that is going to be dangerous.
For weeks,… https://t.co/OTMmztcyzP
— WhalePump Reborn (@WhalePumpReborn) November 3, 2025
“Every thing is able to be filed, as Binance fully disagrees with the quantities Wintermute is asking for,” the consumer mentioned in a remark below his submit.
WhalePump Reborn additionally claimed that a number of different crypto buying and selling corporations had been additionally making ready to sue Binance, and that he had direct messages (DMs) made by the Wintermute CEO “actually begging everybody to affix the lawsuit.”
The account added that Binance and Wintermute will “deny every part as they attempt to attain last-minute settlement to keep away from additional injury.”
“What a larp, all full bullshit,” Gaevoy responded.
Wintermute CEO Beforehand Mentioned Agency Was ADL’d At ‘Ridiculous Costs’
The rumors adopted an interview with Gaevoy that was shared on Oct. 20 by the X account cryptotesters that was considered 132k occasions.
Gaevoy mentioned that Wintermute was auto-deleveraged on exchanges like Binance “at ridiculous costs.”
Binance’s auto-deleveraging mechanism was activated through the market crash, however resulted in brief liquidations at costs as much as 5 occasions the prevailing market charges.
Gaevoy predicted within the interview that crypto alternate platforms will face some challenges and lawsuits from buying and selling corporations attributable to how their programs reacted through the market meltdown.
“Among the ADL fills we acquired had been very unusual,” the Wintermute CEO mentioned within the interview.
An on-chain evaluation of Wintermute’s 10 tracked wallets throughout Ethereum, Arbitrum, and Solana revealed that the corporate’s portfolio declined by 12% because of the Oct. 10 flash crash, dropping from $637 million to $572 million.
The evaluation reveals that there aren’t any massive withdrawals exceeding $10 million or liquidation patterns involving Compound or Aave. Nonetheless, there was a single 1,000 BTC influx value roughly $61 million that occurred on Oct. 4, simply days earlier than the flash crash.
Binance Co-Founder CZ Weighed In
After the market crash, Binance disbursed $188 million from its insurance coverage fund. It additionally issued $283 million in refunds for oracle-related depegs. However losses from the alternate’s ADL had been excluded from compensation.
Former Binance co-founder Changpeng Zhao, identified by his nickname CZ, advised his 10.4 million followers on X to all the time confirm with “official sources.”
😆🤷♂️
If somebody made you consider in any other case, it is time to click on unfollow. https://t.co/rlkg811qNq
— CZ 🔶 BNB (@cz_binance) November 3, 2025
The Oct. 10 flash crash precipitated the crypto market to undergo one in every of its largest liquidation occasions in historical past, with over $19 billion worn out from leverage buying and selling positions in a single day. This flash crash additionally erased round $600 billion from the crypto market cap.
It was triggered by US President Donald Trump threatening to impose a 100% extra commerce tariff on exports from China.
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