Amidst a wave of doubts about the transparency of exchanges after the record crash on October 11, Wintermute officially rejected the lawsuit against Binance, but still left open questions about "irregularities" in the liquidation mechanism.
Wintermute speaks out about “unreasonable liquidation prices” after historic crash on October 11. Photo: Decrypt
Wintermute quashes rumors of suing Binance
- Evgeny Gaevoy, founder and CEO of Wintermute - one of the leading market makers and algorithmic trading companies in the crypto market - recently spoke out to completely dispel rumors that his company was preparing to sue Binance after the market crash in mid-October .
Massive rumors around Wintermute vs Binance after the October crash 🚨
— StarPlatinum (@StarPlatinumSOL) November 3, 2025
Here's what's happening:
People is now claiming that Wintermute, one of crypto's largest market makers is preparing to sue Binance
Over unfair ADL executions during the October 10 crash that liquidated… pic.twitter.com/icBd32E0gi
- As Coin68 reported, on October 11, the crypto market suddenly witnessed a violent collapse, blowing away more than 20 billion USD in leveraged positions in just a few hours, under pressure from news of the US imposing 100% tariffs on Chinese goods.
- This event has many observers concerned that some market makers or large trading organizations may have suffered serious losses, similar to the contagion effect that occurred in 2022.
- Shortly after, an X account named WhalePump Reborn (with about 13,000 Watcher but not in the prominent “Crypto Twitter” circle) posted that Wintermute was heavily affected by Binance’s ADL (Auto-Deleveraging) mechanism and was asking for compensation. This source also confirmed that Binance did not agree with the compensation amount that Wintermute proposed, sparking rumors that the two sides were about to go to court.
- In response to these allegations, Evgeny Gaevoy responded frankly on X, calling these accusations completely baseless . He confirmed:
“Nothing has changed since my last tweet and we have never had any intention of suing Binance, nor do we see any reason to do so in the future.”
Literally nothing changed since this tweet and we never had plans to sue binance, nor see any reason to do it in the future
— wishful_cynic (@EvgenyGaevoy) November 3, 2025
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 wont https://t.co/0oHShby0Uk
- Immediately after the mass liquidation, Gaevoy confirmed that Wintermute survived the largest liquidation event in crypto history and the company is still operating normally.
- Changpeng Zhao (CZ), founder of Binance, also posted that if someone leads the community to believe baseless rumors - such as Wintermute intending to sue Binance or Binance manipulating the liquidation mechanism - then it is best for users to stop following those sources to avoid being misled.
😆🤷♂️
— CZ 🔶 BNB (@cz_binance) November 3, 2025
If someone makes you believe otherwise, it's time to click unfollow. https://t.co/rlkg811qNq
“Irregularities” in liquidation and the relationship with Binance
- Despite denying any lawsuit, Gaevoy left many hidden messages on The Block's "Big Brain" podcast in late October.
Wintermute CEO @EvgenyGaevoy on how they got ADL'd on Binance and predicts lawsuits and challenges from trading firms. pic.twitter.com/d2hGXoOOHc
— cryptotesters (@cryptotesters) October 20, 2025
- He said some of Wintermute 's liquidations were very strange and occurred at completely unreasonable prices, implying there could be problems with the liquidation mechanism or market liquidation .
- Wintermute transferred around $700 million to Binance just hours before the market crash, then withdrew almost all of it. By the weekend after the event, Gaevoy insisted that Wintermute was completely fine.
- However, from an objective perspective, it is also impossible to rule out the possibility that the two sides are quietly resolving their internal disputes instead of publicly litigating. In the financial and crypto world, behind-the-scenes agreements are often kept secret, and only insiders really know whether any lawsuits are taking place.
- After the crash, Binance had to intervene strongly to stabilize user psychology and the system. Specifically:
The exchange has paid out $283 million to some traders who suffered losses due to the depegging of USDe, BNSOL, and WBETH Token on the platform.
Launched a $400 million support package , of which $100 million is earmarked for low-interest loans to institutions to restart trading after the volatility.
- However, it is still unclear whether Wintermute is among the group that will be reimbursed by Binance.
- According to multiple sources cited by The Protos , several other organizations and traders are XEM suing major exchanges, including Binance, because they believe that automated liquidation mechanisms (like ADL) may operate in a non-transparent manner during market crashes.
- Some analysts say that while Wintermute denies suing, Gaevoy's comments about unreasonable liquidation prices may reflect deeper flaws in the exchange's liquidation structure, especially as open interest in the market hit record levels just before the crash.
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