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Wintermute founder rejects lawsuit rumors after Oct. 11 crash
Wintermute founder and CEO Evgeny Gaevoy has publicly denied online claims that the market maker plans to sue Binance after suffering losses during the mass crypto market crash on Oct. 11. In a post shared on Nov. 4, Gaevoy reiterated that Wintermute is operating normally and that there are no plans to pursue legal action against Binance.
What sparked the rumors
The speculation began when a commentary account called WhalePump Reborn, which has around 14,000 followers, published a thread alleging that Wintermute intended to sue Binance for losing 'hundreds of millions' in the $19 billion market sell-off. The thread warned that the situation could become severe if Binance founder Changpeng Zhao failed to compensate market makers hit by the crash, and even compared the potential fallout to the FTX collapse.
Gaevoy responded to the thread directly, calling the accusations a 'larp' and denying that Wintermute had any intention of pursuing litigation. He quoted an earlier post he made during the immediate aftermath of the crash, which stated that the company was 'perfectly fine, business as usual.'
Allegations of NDAs and coordinated action
WhalePump Reborn later suggested that Gaevoy might have signed a non-disclosure agreement with Binance if compensation requests were made, and claimed that Wintermute was coordinating with other market makers to mount a lawsuit. Gaevoy denied both allegations.
What we know about Wintermute's losses
Gaevoy has acknowledged that Wintermute experienced unusual liquidations during the Oct. 11 crash, telling a podcast hosted by The Block that some positions were liquidated at 'completely ridiculous' prices. However, he has not disclosed a precise figure for the firm s losses, and it remains unclear whether Binance compensated Wintermute directly.
Public on-chain analytics show Wintermute moved roughly $700 million onto Binance prior to the crash, and the market maker is widely recognized as one of the exchange s largest liquidity providers. That positioning has intensified scrutiny of the crash and the mechanics that caused mass liquidations across exchanges.
Suspected mechanics behind the Oct. 11 market crash
Several industry observers, including Wu Blockchain, have suggested the crash may have been triggered by an exploit or coordinated action that took advantage of a vulnerability in Binance s Unified Account margin system. The incident coincided with the exchange s oracle price adjustment window, a timing that critics say could have opened an opportunity for actors to manipulate on-chain prices and trigger mass liquidations.
Binance response and industry payouts
Binance reported paying out $283 million to traders after extreme depegging affected assets such as Ethena USDe, wBETH and BnSOL. Overall realized losses from the 24-hour trading volume in the affected markets have been estimated between $500 million and $1 billion. In addition, Binance announced a broader $400 million compensation initiative, which included a $100 million low-interest loan facility aimed at institutional users to help them resume trading.
Although Binance s public relief efforts covered a range of affected traders and instruments, reports have not confirmed whether the exchange provided direct compensation to Wintermute. Because Wintermute is a key liquidity provider on Binance, that question has been a focal point in conversations about exchange risk, market-making exposure, and counterparty support in times of extreme volatility.
What industry participants are watching
Market participants and regulators are closely watching the fallout from the crash for several reasons. First, the event exposed potential weaknesses in margin and unified account structures, prompting renewed attention to oracle robustness and price feed integrity. Second, the incident highlighted the interconnectedness of liquidity providers, exchanges, and trading venues, and how stress at one node can cascade through the broader crypto ecosystem.
For market makers like Wintermute, reputation and operational continuity are critical. Gaevoy s public denials appear aimed at calming counterparties and clients, preventing misinformation from interfering with liquidity operations. Still, the lack of transparency on exact loss figures leaves unanswered questions about balance sheet impact and potential long-term consequences for liquidity provisioning across centralized exchanges and DeFi markets.
Takeaway for traders and crypto institutions
The Oct. 11 crash underscores the importance of robust risk management, diversified liquidity channels, and careful scrutiny of exchange margin mechanisms. Traders should continue to monitor oracle behavior, on-chain flows, and official statements from exchanges and major market makers. As this story develops, clear disclosures from affected firms and transparent remediation initiatives from exchanges will be essential to restoring confidence in volatile scenarios.
For now, Wintermute s CEO has repeatedly said the firm is stable and has dismissed claims of a planned lawsuit against Binance. While the wider market debate over the crash s causes and the adequacy of exchange responses continues, industry observers will be watching for further disclosures from both Wintermute and Binance.
Source: crypto
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