Wintermute Denies Plans to Sue Binance Over October $19B Market Crash

Highlights:

• Evgeny Gaevoy said Wintermute will not sue Binance after the October crash.
• Wintermute helps Binance keep markets stable, even during system glitches.
• Changpeng Zhao agreed and told people believing rumors to “click unfollow.”

Evgeny Gaevoy, chief executive officer and founder of crypto trading firm Wintermute, has dismissed claims that the company plans to sue Binance following October’s market turmoil. Gaevoy directly addressed circulating social media rumors, stating on X: “literally nothing changed since this tweet and we never had plans to sue Binance, nor see any reason to do it in the future.” He also reportedly joked that he could make a note of those spreading baseless rumors, but most people believing them had “goldfish memory capacity,” so he would not.

literally nothing changed since this tweet and we never had plans to sue binance, nor see any reason to do it in future

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

— wishful_cynic (@EvgenyGaevoy) November 3, 2025

Wintermute, an independent trading firm, provides liquidity on Binance to help stabilize prices and keep markets efficient. Some reports said that during the October 10 crash, which wiped out over $19 billion in positions, Wintermute’s liquidity was affected by a problem in Binance’s auto-deleveraging system. That day, Bitcoin dropped from $121,560 to below $103,000 following US President Donald Trump’s tariff announcement. 

The rumors about Wintermute suing Binance started with a user named Whale Pump. He said the firm lost hundreds of millions in the crash and was planning legal action. Gaevoy responded, calling the claims “all complete bullshit.” WhalePump Reborn also claimed that other trading firms might sue Binance, but this seems false as well.

Binance CEO Backs Wintermute

Former Binance CEO Changpeng Zhao appeared to support the denial by quote-tweeting Gaevoy. He suggested that anyone believing otherwise should “click unfollow.”

😆🤷‍♂️

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

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

In a separate post, he added, “Lots of random FUD in the market. People are in pain, jittery, and anxious. Whales are pouncing on it, spreading more FUD, and cashing in on it.”

On a late October episode of The Block’s podcast “Big Brain,” Gaevoy acknowledged that some of the firm’s liquidation strikes were “very weird” and executed at “completely ridiculous prices.” Despite this, he reassured stakeholders that the company’s overall financial health remained solid. Gaevoy highlighted that Wintermute’s risk management systems functioned effectively, even under extreme volatility.

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

October Crash Sparks Calls for Accountability

Market analysts described the October 10th crash as one of the largest liquidation events in recent cryptocurrency history. Following the incident, Binance confirmed it had reimbursed affected traders with $283 million after synthetic assets USDe, BNSOL, and WBETH went off-peg. The exchange also launched a $400 million rescue fund, including $100 million in low-interest capital to help institutional clients re-enter trading smoothly.

Some funds want more transparency and want Binance to take legal responsibility for the crash. Arthur Cheung, CEO of DeFiance Capital, said the October 10 event could be important for crypto. He said it might test whether crypto exchanges have duties like traditional markets. He added that users are not powerless, and outcomes can change once facts are known.

It’s unclear if the full details of the crash will ever come out. However, after the crash, the market has turned sour, reaching levels similar to the early 2025 tariff war. On Monday, the crypto market fell 4% to $3.46 trillion.