Wintermute CEO Denies Binance Lawsuit Rumors

Wintermute CEO Evgeny Gaevoy has denied rumors that his firm plans to sue crypto exchange Binance for losses incurred during the Oct. 10 flash crash.

“We never had plans to sue Binance, nor see any reason to do it in future,” the CEO wrote on X. “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 won’t.” 

The rumours emerged after posts on X alleged that Wintermute, a market making and trading firm that provides liquidity on Binance’s platform, suffered heavy losses during the flash crash due to a failure in Binance’s auto-deleveraging mechanism.

X User Claimed Wintermute Ready To Take Legal Action

X user “WhalePump Reborn” claimed that Wintermute was gearing up to file a lawsuit against Binance to be reimbursed for the unconfirmed losses. 

“Wintermute is suing Binance,” the X user said. “They lost hundreds of millions.”

YES.

Wintermute is suing Binance.

And they are not the only ones that got rekt.

They lost hundreds of millions.

I have all the names of who is about to blow up.

It’s not going to be pretty.

Unless CZ finds a way for compensation, this is going to be bad.

For weeks,… https://t.co/OTMmztcyzP

— WhalePump Reborn (@WhalePumpReborn) November 3, 2025

“Everything is ready to be filed, as Binance completely disagrees with the amounts Wintermute is asking for,” the user said in a comment under his post. 

WhalePump Reborn also claimed that several other crypto trading firms were also preparing to sue Binance, and that he had direct messages (DMs) made by the Wintermute CEO “literally begging everyone to join the lawsuit.” 

The account added that Binance and Wintermute will “deny everything as they try to reach last-minute agreement to avoid further damage.”

“What a larp, all complete bullshit,” Gaevoy responded.

Wintermute CEO Previously Said Firm Was ADL’d At ‘Ridiculous Prices’

The rumors followed an interview with Gaevoy that was shared on Oct. 20 by the X account cryptotesters that was viewed 132k times. 

Gaevoy said that Wintermute was auto-deleveraged on exchanges like Binance “at ridiculous prices.” 

Binance’s auto-deleveraging mechanism was activated during the market crash, but resulted in short liquidations at prices up to five times the prevailing market rates. 

Gaevoy predicted in the interview that crypto exchange platforms will face some challenges and lawsuits from trading firms due to how their systems reacted during the market meltdown. 

“Some of the ADL fills we got were very strange,” the Wintermute CEO said in the interview.

An on-chain analysis of Wintermute’s 10 tracked wallets across Ethereum, Arbitrum, and Solana revealed that the company’s portfolio declined by 12% as a result of the Oct. 10 flash crash, dropping from $637 million to $572 million.

The analysis shows that there are no large withdrawals exceeding $10 million or liquidation patterns involving Compound or Aave. However, there was a single 1,000 BTC inflow worth approximately $61 million that occurred on Oct. 4, just days before the flash crash.

Binance Co-Founder CZ Weighed In

After the market crash, Binance disbursed $188 million from its insurance fund. It also issued $283 million in refunds for oracle-related depegs. But losses from the exchange’s ADL were excluded from compensation. 

Former Binance co-founder Changpeng Zhao, known by his nickname CZ, told his 10.4 million followers on X to always verify with “official sources.”

😆🤷‍♂️

If someone made you believe otherwise, it’s time to click unfollow. https://t.co/rlkg811qNq

— CZ 🔶 BNB (@cz_binance) November 3, 2025

The Oct. 10 flash crash caused the crypto market to suffer one of its biggest liquidation events in history, with over $19 billion wiped out from leverage trading positions in a single day. This flash crash also erased around $600 billion from the crypto market cap. 

It was triggered by US President Donald Trump threatening to impose a 100% additional trade tariff on exports from China.

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