Wintermute CEO Shuts Down Binance Lawsuit Speculation

Evgeny Gaevoy, founder and CEO of cryptocurrency market-making firm Wintermute, has categorically denied online speculation that his company is preparing to sue Binance over alleged losses sustained during the catastrophic market crash of October 10.

The “Crypto Black Friday” crash erased billions in value across the market. Moreover, many in the community blamed Binance after its systems reportedly froze during the year’s most intense liquidation wave.

Wintermute CEO Clears the Air on Binance Lawsuit Rumors

In a recent post on X (formerly Twitter), Gaevoy clarified that Wintermute has no intention of taking legal action against Binance, and does not anticipate doing so in the future.

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“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 won’t,” the CEO wrote.

He pointed back to his October 11 update. At the time, he reassured the community that the market turmoil had not impacted the company and that it was continuing with normal operations.

The denial came amid viral threads alleging Wintermute had been impacted by Binance’s auto-deleveraging (ADL) mechanism and suffered hundreds of millions in damages.

For context, ADL is a safeguard used in leveraged trading to manage systemic risk. When extreme market movements deplete the exchange’s insurance fund, the ADL system automatically closes or reduces profitable traders’ positions to offset the losses from liquidated accounts. This mechanism helps maintain market stability and prevents the platform from incurring overall losses.

“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,” WhalePump Reborn posted.

Nonetheless, Gaevoy stated that these reports were “all complete bullshit.” In a follow-up post, WhalePump Reborn claimed that Binance had already compensated Wintermute. 

The account alleged that the exchange initially offered minimal restitution but later agreed to a larger settlement after facing pressure.

“I have seen the agreements. Allegedly. I have spoken to people involved. Allegedly. Binance bought Wintermute’s silence. Allegedly. Meanwhile, retail investors, as you correctly pointed out, are eating sh*t. Wintermute can still play the arbitration card, as stipulated in the contract with Binance. And if anything like this happens, it will all be decided behind closed doors. I saw the DMs, even though Evgeny has already started cleaning up. Allegedly,” the post read.

The crash, dubbed “Crypto Black Friday,” wiped out over $19.5 billion in leveraged positions. As BeInCrypto reported, the trigger was the US President Donald Trump’s announcement of 100% tariffs on Chinese imports.

At the epicenter were Binance’s technical failures. Users reported serious platform failures — including frozen accounts, halted stop-losses, and more. In response to the backlash, Binance announced a $400 million “Together Initiative” to compensate users.