Wintermute CEO Weigert's Legal Battle Against Binance

Wintermute CEO Rejects Lawsuit Against Binance Over October 10 Crash

4 November 2025 at 14: 58

Reading time: 2 minutes

Wintermute CEO Evgeny Gaevoy has refuted rumors that his market maker platform plans to sue Binance over losses incurred during the October 10th market downturn. The crash resulted in the unwinding of approximately $20 billion in leveraged positions on the market. Gaevoy confirmed via a message on X: “We have never had any plans to sue Binance, nor do we see any reason to do so in the future.” He went on to criticize the spread of unfounded rumors and the short-term memory capacity of those who believe them.

Wintermute, an independent trading firm, plays a crucial role in providing liquidity on the Binance platform, contributing to price stabilization and market efficiency. During the crash on October 10th, it was suggested that Wintermute's liquidity was affected by a failure in Binance's auto-deleveraging risk mechanism. This situation caused the price of Bitcoin plummeted from $121.560 to below $103.000, triggered by a tariff announcement from US President Donald Trump.

A user on X, WhalePump Reborn, claimed that Wintermute was preparing to sue to be reimbursed for the unverified losses, adding that “Binance totally disagrees with the amounts Wintermute is demanding.” This claim prompted Gaevoy to call them out, stating: “What a load of rubbish, everything is complete bullshit.”

WhalePump Reborn further claimed that several other crypto Trading platforms are preparing to sue Binance, but this claim also appears to have little basis.

Trust official sources, Changpeng Zhao said

Former Binance CEO Changpeng Zhao responded to the situation by advising his 10,4 million followers to always verify with "official sources." Numerous crypto influencers spread the rumors, further fueling the fear, uncertainty, and doubt (FUD) created by WhalePump Reborn and several other accounts. Despite the unfounded rumors, Wintermute was accused of contributing to the crash on October 10th after transferring over $700 million to a Binance hot wallet just hours before the drop.

Crypto market loses 3% at the start of the week

At the same time, the crypto market started the week falling by 3% to a total value of $3,65 trillion. There appears to be no single primary catalyst for this decline, but the false rumors about Wintermute and the liquidation of nearly $1,3 billion in leveraged positions within 24 hours likely contributed to the downturn. Market analysts have also noted that Bitcoin OG whales (experienced investors) continue to sell, even though the Bitcoin price remains above $100.000.

Frequently Asked Questions

What's the reason behind the rumors of a lawsuit against Binance?
The rumors arose after the market crash on October 10th, which involved Wintermute. This led to speculation about potential lawsuits, but Wintermute's CEO has denied these allegations.

How has the market reacted to the situation surrounding Wintermute and Binance?
The crypto market fell by 3% due to the unrest, with speculation and liquidations of leveraged positions playing a role in the decline.

What can investors learn from this situation?
This episode underscores the importance of verifying information through official channels, especially in a market where rumors can quickly lead to panic selling and price drops.

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