TLDR
- Wintermute CEO Evgeny Gaevoy has denied rumors that his firm plans to sue Binance over the October market crash.
- The October 10 crash erased over $20 billion in leveraged crypto positions across the industry.
- Gaevoy called the lawsuit accusations “complete bullshit” in his response on social media platform X.
- Social media user WhalePump Reborn claimed Wintermute was seeking reimbursement from Binance but the parties disagreed on amounts.
- Wintermute survived what Gaevoy described as the largest liquidation event in crypto history.
Wintermute CEO Evgeny Gaevoy has dismissed rumors about potential legal action against Binance. The crypto market maker survived massive liquidations during October’s crash. Gaevoy stated the firm never planned to sue the exchange.
Wintermute Responds to Lawsuit Speculation
Social media rumors suggested Wintermute was preparing legal action against Binance. These claims emerged following the October 10 market crash, which wiped out over $20 billion in positions. Gaevoy responded directly on X to address the speculation.
The Wintermute founder called the lawsuit accusations “complete bullshit” in his social media response. He referenced his October 11 post, which confirmed the firm’s survival. The company weathered the largest liquidation event in crypto history.
An X user named WhalePump Reborn spread claims about Wintermute seeking reimbursement from Binance. The account alleged disputes over compensation amounts between the two parties. However, Gaevoy firmly denied these reports.
Details of the October Crash Impact
The October market crash affected traders, market makers, and centralized exchanges across the industry. Experts attributed losses to record high open interest before the pullback. Wintermute faced liquidations at what Gaevoy described as “completely ridiculous price” levels.
Gaevoy discussed some liquidated positions on The Block’s “Big Brain” podcast in late October. He characterized certain liquidations as “very strange” during the market event. The firm reportedly moved $700 million onto Binance hours before the crash occurred.
Binance paid out $283 million to affected traders after the October crash. The exchange launched a $400 million initiative to refund users impacted by the event. This included $100 million in low-interest loans for institutional traders to restart operations.
The market maker confirmed its financial stability following the liquidation event. Gaevoy stated on October 12 that Wintermute was “perfectly fine” after the crash. The firm serves as one of Binance’s largest liquidity providers.
Wintermute withdrew roughly the same amount it had deposited before the crash. The firm’s recovery demonstrates resilience during extreme market volatility. Neither party has confirmed whether Wintermute received any reimbursement from Binance’s compensation program. The October crash caused multiple tokens, including USDe, BNSOL, and WBETH to depeg on Binance.
The post Wintermute CEO Shuts Down Binance Lawsuit Rumors After Crash Drama appeared first on Blockonomi.
Source: https://blockonomi.com/wintermute-ceo-shuts-down-binance-lawsuit-rumors-after-crash-drama/