Wintermute CEO Denies $700M Binance Lawsuit Rumors After Crypto Crash
Wintermute CEO Evgeny Gaevoy has dismissed widespread rumors suggesting the market-making firm intends to sue Binance following...
Quick overview
- Wintermute CEO Evgeny Gaevoy has denied rumors of a lawsuit against Binance, calling them 'completely baseless.'
- He clarified that the recent $700 million transfer to Binance was a standard liquidity management operation, not related to any legal action.
- The crypto community remains anxious following the October 10 market crash, which led to significant liquidations.
- Binance founder Changpeng Zhao urged traders to verify information and avoid panic amid the ongoing market volatility.
Wintermute CEO Evgeny Gaevoy has dismissed widespread rumors suggesting the market-making firm intends to sue Binance following last month’s historic crypto market crash. Addressing speculation circulating across X (formerly Twitter), Gaevoy emphasized that Wintermute has no legal dispute with Binance, calling the reports “completely baseless.”
Gaevoy’s statement came as fears mounted in the crypto community that major trading firms might take legal action over the October 10 market meltdown, which erased billions in value across digital assets. He clarified, “We see no reason to file a lawsuit—nor do we plan to in the future.”
The crypto market remains on edge after the flash crash that sent Bitcoin plunging to $105,000, triggering a wave of liquidations from leveraged traders and institutional holders.
Binance and Market Makers Under Fire
The controversy began when several users claimed a flaw in Binance’s Unified Account margin system had caused multiple tokens—including USDe, wBETH, and BNSOL—to lose their pegs, leading to widespread forced liquidations. Some community members pointed fingers at Binance, Wintermute, and even political figures, blaming them for market manipulation.
Adding fuel to the speculation, blockchain data showed Wintermute transferred over $700 million into a Binance hot wallet shortly before the crash. However, Gaevoy dismissed any connection, stressing the deposit was standard liquidity management, not insider action.
He also denied coordinating any joint legal strategy with other market makers. “I should probably take note of everyone spreading these false rumors,” he quipped, “but most believers have a goldfish memory.”
Key Takeaways
- No lawsuit: Wintermute has no legal plans against Binance.
- $700M transfer: Regular operations, not a prelude to legal action.
- Rumors spread online: Sparked by anonymous X user WhalePump Reborn.
CZ Responds: “Verify Before You Panic”
Binance founder Changpeng Zhao (CZ) also weighed in, urging calm amid what he called a “wave of FUD.” He reminded traders that misinformation thrives in volatile markets.
“People are in pain, jittery, and anxious. Whales are taking advantage of it—spreading fear and cashing in,” CZ said.
He encouraged users to rely on verified, official updates instead of social media speculation.
With both Binance and Wintermute publicly rejecting legal conflict, analysts say the clarification may help stabilize sentiment in a market still recovering from one of its sharpest drops this year.
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