Evgeny Gaevoy, CEO and founder of crypto market maker Wintermute, has firmly denied allegations that his firm is preparing legal action against Binance in the wake of the October 10th market crash. In a post on X, Gaevoy stated, "literally nothing changed since this tweet and we never had plans to sue Binance, nor see any reason to do it in the future." His comments directly addressed social media speculation that Wintermute had suffered heavy losses and was considering a lawsuit.
The rumors emerged after a massive liquidation event on October 10th, which erased over $20 billion in leveraged positions across crypto exchanges. This sell-off triggered widespread liquidations, with analysts describing it as one of the largest in cryptocurrency history. The crash was fueled by high leverage and a sudden liquidity drop, causing price dislocations in assets like USDe, BNSOL, and WBETH on Binance.
In response, Binance distributed $283 million in compensation to affected traders and launched a $400 million rescue fund, including $100 million in low-interest loans for institutional clients. Gaevoy later acknowledged on The Block's Big Brain podcast that some of Wintermute's liquidations were "very weird" and occurred at "completely ridiculous prices," but he emphasized the firm's financial stability and effective risk management.
Wintermute, one of Binance's largest liquidity providers, had moved over $700 million to the exchange hours before the crash and withdrew a similar amount afterward. Gaevoy's denial has helped calm market nerves, reducing fears of a legal battle that could have exacerbated anxiety and liquidity crises. This transparency is seen as a positive step in maintaining market stability amid ongoing regulatory pressures on Binance.
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