Wintermute CEO Slams Binance Lawsuit Rumors as Baseless

The speculation began after Bitcoin plunged from $121,560 to below $103,000 after a tariff announcement by US President Donald Trump. Former Binance CEO Changpeng Zhao also urged followers to rely only on verified sources as several influencers amplified the false claims. Meanwhile, Coin Center filed an amicus brief in the ongoing trial of Anton and James Peraire-Bueno, who are accused of exploiting Ethereum’s MEV mechanism for $25 million. The organization argues that the government’s “honest validator” theory misrepresents how blockchain validation works and could set a dangerous precedent for crypto regulation.

Wintermute Refutes Binance Lawsuit Rumors

Wintermute CEO Evgeny Gaevoy stopped circulating rumors that his market-making firm plans to take legal action against Binance over losses tied to the Oct. 10 market crash. In a post on X that was shared on Monday, Gaevoy firmly denied the allegations by stating that “we never had plans to sue Binance, nor see any reason to do it in future.” 

He also took aim at those spreading the misinformation, adding that many of them “have goldfish memory capacity.” Wintermute is a leading independent trading firm known for providing liquidity across major exchanges, including Binance, and it plays a key role in helping stabilize prices and ensure efficient market activity.

The rumors originated after the sudden crash on Oct. 10, when Bitcoin plunged from around $121,560 to below $103,000 after US President Donald Trump’s announcement of new tariffs. Some reports suggested that Binance’s auto-deleveraging system malfunctioned during the event, which allegedly affected Wintermute’s liquidity. 

An X user known as WhalePump Reborn claimed that Wintermute was preparing a lawsuit to recover losses from Binance, and even said that the two parties disagreed over the compensation amount. Gaevoy very quickly dismissed the claims, and labeled them “complete bullshit.” He also accused the account of spreading unfounded speculation.

Former Binance CEO Changpeng “CZ” Zhao also stepped in to address the situation, and urged his followers to rely only on verified information from official sources. Zhao’s comment came as several influencers amplified the baseless claims, which fueled market fear and uncertainty. Despite the denials, Wintermute itself faced criticism from some quarters after blockchain data showed a $700 million transfer to a Binance wallet just hours before the market crash, though no evidence has linked the move to the broader sell-off.

The market turbulence extended into this week, with the global crypto market cap slipping 3% to $3.65 trillion on Monday. Analysts say the combination of rumor-driven FUD, ongoing liquidations, and continued selling by long-time Bitcoin holders has kept volatility high. 

Coin Center Challenges MEV Trial

In other legal news, the cryptocurrency policy organization Coin Center entered the ongoing criminal trial of Anton and James Peraire-Bueno, the brothers accused of exploiting the Ethereum blockchain to extract $25 million through a maximal extractable value (MEV) scheme. In an amicus curiae brief that was filed Monday, Coin Center argued that the US government’s case rests on a flawed interpretation of how blockchain validation works, and specifically challenged the prosecutors’ theory of “honest validation.”

The nonprofit contends that the concept of honesty in blockchain validation is mathematical rather than moral or legal. “Honest validation in cryptocurrency communities is a mathematical check rather than a legal or normative judgment,” Coin Center wrote, and explained that the defendants did not violate any explicit rules of the Ethereum protocol. It added that the government’s theory effectively seeks to impose “a novel and alien code of conduct” on blockchain participants, something the organization says should not be done through criminal prosecution.

Amicus Curiae brief that was filed by Coin Center

The Peraire-Bueno brothers allegedly used MEV bots to reorder transactions in Ethereum blocks for financial gain. This is a practice that is widely known but still controversial in the crypto space. 

Prosecutors claim the pair misrepresented themselves as “honest validators” in order to deceive others on the network, thereby committing fraud. However, Coin Center and defense attorneys reject this narrative, saying it distorts how Ethereum’s consensus rules function. Defense lawyers reportedly called the accusation “nonsensical,” and argued that the supposed victims in this case were actually other automated bots engaging in speculative trading strategies.

Prosecutors, on the other hand, opposed Coin Center’s involvement, and claimed that the organization’s brief could sway jurors by appealing to policy arguments rather than legal reasoning. The outcome of this case could set a very important precedent for how blockchain-related conduct is interpreted under US fraud law. 

If convicted, the Peraire-Bueno brothers face up to 20 years in prison on each count of conspiracy to commit wire fraud, money laundering, and receiving stolen property.